Plug Power (NASDAQ:PLUG) stock first made waves on Wallstreet last year, posting an impressive 538% gain for 2020. However, in 2021 the company has struggled to maintain this growth, down 2.52% YTD.
In saying this, Plug Power is unique as it offers exposure to the commercial hydrogen energy industry. Plug Power’s sheer operating scale makes it the largest liquid hydrogen consumer in the world.
PLUG stock has been strongly influenced by Wallstreets bullish movement towards the next generation Hydrogen economy. Moreover, the Hydrogen economy could provide $2.5 trillion in direct revenues in 2050 according to the Bank of America. So let’s breakdown what analysts are saying about the Plug Power Stock Forecast as we move into 2022.
Analysts remain upbeat on Plug Power Stock Forecast
The average 12 month price target for PLUG stock is currently $49 a share, up from $37 a share in January this year. To put the bullish sentiment shift into perspective, since our last article on PLUG in August the average price target from analysts has increased by 300%.
The change in sentiment is partially due to Plug Power’s fall from heights of $70 a share to now trading in the $30’s. While Plug Powers market cap fell, its business model remains unchanged and multiple analysts have highlighted this. At its current price, Wallstreet sees a healthy upside from the current trading price.
Morgan Stanley Set $65 target for 2022
Last month, Morgan Stanley analyst Stephen Byrd upgraded the firms Plug Power Stock forecast with a new target of $65 a share. Byrd has boosted Plug Power’s valuation multiple times over the past few months, as the companies revenue opportunities continue to grow.
The analyst believes Plug Power is well positioned to benefit from regulatory and market tailwinds expected in the near future. The analyst added that the companies growing revenue base and an attractive risk reward profile are upsides for investors.
Interestingly, Morgan Stanley has reversed their position on Plug Power Stock. Byrd noted in November that he is now more bullish than ever on Plug Power’s ability to grow its hydrogen production and electrolyzer businesses and dominate market share within these segments.
Plug Power’s revenue could reach $950 Million in 2022 says analyst
In October, Piper Sandler analyst Pearce Hammond noted Plug Power’s revenues could reach heights of $950 Million in 2022.
The general consensus on Wallstreet expects Plug Power to generate $810 Million, however Hammond sees a significant upside to this figure. Hammond said the Street is not accounting for the Fortescue electrolzyer deal which is incremental to the company’s 2022 revenue guidance.
The analyst also sees additional catalysts in Plug Powers Stock Forecast with the United Nations Climate Change Conference driving investors to increase sector exposure.
What’s in the pipeline for 2022
During the height of the pandemic, Plug Power’s technology helped move 30% of the retail food and groceries in the United States. They have assisted retail giants such as Walmart, Amazon, Kroger, SuperValu, Wegmans, and Aryzta. The scale of PLUG is impressive, especially if you dive deeper into its vertical integration strategy. Plug Power has been able to concrete its roots deep into the Hydrogen industry, through acquiring their main hydrogen suppliers. Here’s a few key events in pipeline for Plug stock in 2022:
- Plug Power recently inked an agreement with Edison Motors. The agreement outlined developing prototypes of Edison Motors’ fuel cell electric city bus, equipped with Plug Power’s 125kW ProGen fuel cell system in 2022. The partnership will see both companies cooperate on future mobility applications including trucks, drones, vessels, and PAVs (Personal Air Vehicles).
- In Q1 2022, Plug Power is expected to begin its long term arrangement with Natural Gas Transport company Certarus. The deal will expand Plug Power’s hydrogen supply chain in North America and make cost effective hydrogen available to more customers in the US.
- Plug also plan to retrofit ten of its highest demanded facilities, which will enhance the value of Plug Power’s offering by “improving customer throughput and productivity”.
- By 2022, Plug expects to have four green hydrogen plants operating. Plug Power expect to expand this to 13 plants by 2025.
Plug Power Stock Forecast 2022
In conclusion, despite Plug stocks (NASDAQ:PLUG) YTD performance, Wallstreet remains upbeat on the Plug Power Stock Forecast for 2022 with an average valuation implying a 36% upside.
Stephen Byrd highlighted the companies strong growth opportunities that will benefit from regulatory support and as well as market tailwinds.
Lastly, the strategic partnerships in the pipeline for 2022 alongside retrofits to existing sites will assist Plug expand their hydrogen ecosystem across the United States, across multiple industries. In fact, Plug Power is also exploring potential use of hydrogen in aerospace alongside Airbus, you can read more about it here.
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The content above is strictly for informational purposes 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.