Plug Power Stock (NASDAQ:PLUG) continues its bullish run this week as Morgan Stanley analyst, Stephen Byrd upgraded the firms rating to Overweight and a $40 valuation. The upgrade from one of Wallstreet biggest names is not the only good news catalyst this week. Plug Power also announced a strategic partnership with Airbus which “aims to accelerate the aviation industry’s transition to climate-neutral air travel”. Today we will discuss everything investors need to know about Plug Power stock.
Morgan Stanley upgrades Plug Power stock rating
Earlier today, Morgan Stanley analyst Stephen Byrd upgraded the firms outlook on Plug Power to Overweight with a $40 valuation. Byrd noted to investors that Plug Power is well positioned to benefit from regulatory and market tailwinds expected in the near future. The analyst added that the company currently maintains a healthy cash balance of $4 Billion. Alongside a growing revenue base and an attractive risk reward profile.
In addition, Byrd alongside B.Riley analysts expect Plug Power to upgrade their revenue guidance at the companies investor presentation tomorrow. The improved guidance is derived from robust market opportunities opening up the hydrogen giant. Morgan Stanley’s valuation of Plug Power stock represents a 34% upside from the current trading price.
What the Airbus partnership means for Plug Power Stock
Firstly, AirBus is currently one of the largest aerospace product manufacturers in the world. The aerospace giant plans to bring zero-emission aircrafts to the market by 2035 and the company sees potential in hydrogen powered aircraft. In the United States, Plug Power has built a “hydrogen highway” extending to 165 refueling stations that service fleets of hydrogen-powered trucks, forklifts and e-mobility vehicles. In fact, Plug power is currently the largest buyer of liquid Hydrogen in the world.
The strategic partnership between Airbus and Plug Power opens the door for entry into the $300 Billion airspace industry. The partners will conduct a joint study and roadmap that aims to develop green hydrogen infrastructure for aviation at scale. The possible implications of this partnership could be drastic depending on the success of the studies conducted. We will see in the companies investor presentation tomorrow what they believe the implications on revenue will be over the next 5 years.
“We at Airbus see huge potential for green hydrogen to power our future zero-emission aircraft. This partnership with Plug Power – a true pioneer in developing green hydrogen infrastructure across the United States, and key points across Europe and Asia – will enable us to leverage their expertise to decarbonize airports while preparing them for the arrival of hydrogen aircraft by 2035.”Glenn Llewellyn, Airbus Vice-President, Zero-Emission Aircraft
The Bottom Line – Plug Power Stock
Overall, the boosted valuation from Wallstreet is just another catalyst that is driving Plug stock higher this week. Stephen Byrd highlighted the companies strong growth opportunities that will benefit from regulatory support and as well as market tailwinds. As noted by Byrd, investors will be keeping a close eye on any changes to revenue guidance in tomorrows investor presentation.
Lastly, the strategic partnership with Airbus offers Plug Power a unique opportunity to break into the airspace market, currently worth of $300 Billion globally. The studies conducted by Plug Power and Airbus will provide valuable insight into the future of aviation and confirm if hydrogen power is the answer.
The information above is general information only and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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