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Moderna stock forecast – Where will Moderna be in 2025?

Moderna stock forecast – Where will Moderna be in 2025?

To say Moderna (NASDAQ:MRNA) has had a brilliant year trading on Wallstreet would be an understatement. The COVID-19 vaccine candidate has provided investors immense returns over the past 12-18 months gaining 333% YTD.

Moderna’s strong revenue boost in 2021 has been derived from the overall depth of the COVID-19 vaccine market, which is expected to grow to $132.3 billion by 2025.

Investors are now asking what the Moderna stock forecast is for the remainder of 2021 and beyond. Where will Moderna be by 2025? This article will breakdown everything investors need to know.

What is Wallstreet saying about Moderna stock (NASDAQ:MRNA)?

Moderna is one of the strongest performing stocks in 2021, gaining 572% over the past 12 months. The general sentiment across the board of 18 Wallstreet analysts is bullish with majority Buy ratings.

However, MRNA’s sharp price action has outperformed analysts price targets with the average target staggering at $290.83. Despite Moderna’s recent success, analysts are now sitting on the side of caution with revenues expected to plateau by 2023.

Piper Sandler moves to the sideline on Moderna stock forecast

Piper Sandler analyst Edward Tenthoff downgraded Moderna to Neutral from Overweight with a price target of $445 a share following the Q2 earnings. Tenthoff forecasts Moderna’s Spikevax revenues to grow to $19.5B in 2021.

Despite the boosted target, the analyst noted the recent uptrend “fully values Moderna’s Covid vaccine” according to theFly. In other words, Moderna’s future cash flows from the vaccine have been priced into the companies market capitalisation or share price.

Jefferies Financial Group increases revenue guidance

Senior research analyst Michael Yee recently boosted Moderna’s 12 month price target to $250 a share. Michael Yee noted “We see 2021 guidance increasing to $21 billion from $19 billion and expect positive commentary around boosters in development and preparing for 2022 orders”. Furthermore, the senior analyst dubbed Moderna the “Tesla of Biotechs” remaining bullish in comparison to Piper Sandler.

Moderna stock forecast

Revenue outlook for Moderna

Firstly, Moderna’s success in bringing its COVID-19 vaccine to the global market has fuelled immense revenue growth over the past 12 months. With the vast demand for the COVID-19 vaccines across the globe, Moderna has seen a year-on-year revenue growth of 6467.16% based on the companies recent earnings report.

This elite revenue growth also has a high visibility over the next 12-24 months. Moderna currently have signed Advance Purchase Agreements worth over $20 Billion for FY 2021 and $12 Billion in FY 2022.

In the second quarter of this year, Moderna generated $4.4 billion in revenue. The majority of the Q2 revenue was derived from the sale of 199 million COVID vaccines. With a strong revenue performance and high visibility, analysts are expecting further growth over the next 2 years.

Across the board of 17 Wallstreet analysts, the average revenue forecast for 2021 sits at $18.32 Billion. As discussed previously, Jeffries Financial holds the highest revenue forecast at $21 Billion for the fiscal year. Looking ahead, analysts expect revenue to plateau in 2022 with an average forecast suggesting MRNA to generate $15.35 Billion.

The key drivers of this revenue growth includes the companies Advanced Purchase Agreements (APA’S) that include a pipeline of sales worth $19.2 Billion. In addition, Moderna has begun signing APA’s for 2022 and 2023, further extending the companies revenue visibility.

What’s in Moderna’s pipeline?

Moderna’s pipeline boasts a vast portfolio of vaccines including the COVID-19 vaccine alongside vaccines against HIV, Influenza and many other diseases. However, the companies pipeline also includes Cancer vaccines, Intratumoral Immuno-Oncology therapies and Intracellular Therapeutics.

This extensive list of treatments provides investors some confidence in the long term outlook of the company. The revenue growth experienced from the COVID-19 vaccine will also assist the company expand their studies on current and future therapies and vaccine efforts.

Moderna stock forecast 2025
Guilherand-Granges, France – November 14, 2020. Covid-19 vaccine with Moderna logo. American biotechnology company that focus on drug development and vaccine technologies.

The Bottom Line – Moderna stock forecast 2025

In summary, Moderna has outperformed both the market and analysts expectations in 2021. In addition, the company looks to maintain the beneficiary of high vaccine demand across the globe, with revenue expected to reach $18 Billion for the fiscal year.

However, MRNA is currently trading at an all time high suggesting investors and fund managers will be looking to cash in on its yearly performance. In addition, some analysts see the current valuation as priced in for future cash flows from the vaccine. Nevertheless, the bulls maintain that potential booster vaccinations will continue to provide longer term visibility over the next 5 years.

We will continue to monitor the price movement of Moderna stock and update our viewers on the Moderna stock forecast for 2025.

Written by Tyger Fitzpatrick, Founder of Youth Investment Group.

The information above is not financial advice. 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.

Subscribe to our Youtube channel here.

We are now official partners with Tradingview

Firstly, Tradingview is a social network of 30 million traders and investors using the world’s best charts and analysis tools to spot opportunity in global markets. You can sign up to Tradingview by clicking the banner below. Tradingview allows you to follow your favorite assets, find trading ideas, chat with others, spot trends, and place trades directly on our charts.

Looking to start trading in Australia or the UK?

Do you live in Australia or the United Kingdom and looking to invest in the US market? Good news! We’ve partnered with Stake. Trade 4,500+ US stocks and ETFs with $0 brokerage and no fx fees per trade. Use our code “YIG” to receive a free stock when funding your new account.

In addition, Stake is one of the leading US trading platforms for Australian and UK investors. Click hereto start trading US stocks with a streamline trading experience. Lastly, for more information on our referral program and how it works click here.

Microvast stock forecast – MVST forecasts $2.3 Billion in revenue by 2025

Microvast stock forecast – MVST forecasts $2.3 Billion in revenue by 2025

Lithium battery manufacturer Microvast (NASDAQ:MVST) recently completed their highly anticipated merger with SPAC company Tuscan Holdings (NASDAQ:THCB). Microvast’s debut on Wallstreet has been turbulent, down 19.40% for the week.

Nevertheless, investors are still confident the stock can bounce back as Microvast is a global leader in providing next generation battery technologies for Electric vehicles.

Microvast aims to target an addressable market of $30 Billion. Furthermore, the companies next generation batteries are now operating in over 30,000 vehicles across 19 different countries. With plenty to breakdown, this article will discuss the Microvast stock forecast for 2021 and beyond.

What the completed merger means for the future of Microvast

Firstly, the benefit of the THCB merger is the combined company has raised capital from PIPE investors to fund their future expansion strategies. Microvast plan to utilise the $822 Million cash raised to achieve three main objectives.

1) Microvast aim to expand their Manufacturing facility buildout both in the US and Europe.

2) Fulfillment of current customer demand which includes a pipeline of contracted revenue worth between $1 Billion – $1.5 Billion according to the company.

3) Lastly, the company aims to use the proceeds to reduce the current Debt.

Microvast’s current partnerships equate to over $1.5 Billion in contracted revenue through 2027. The strong visibility of contracted revenue is a driving factor in positive investor sentiment.

Microvast revenue forecasted to reach $6.8 billion by 2030

In comparison to the majority of SPAC mergers, the fact that Microvast is generating strong revenue presents an upside for shareholders.

Microvast reported $100 Million in revenue for the fiscal year of 2020 and expects this to double to $230 Million in 2021. For the current year, contracted revenue is expected to drive 19.1% of the total revenue forecasted. On average, contracted revenue will retain a quarter (25%) share of total revenue from 2021-2025 according to Microvast.

We can see a pattern of strong revenue inclination, which is likely a driving factor in the current bullish sentiment we saw in THCB stock. In Microvast’s investor presentation, the company forecasts $2.3 Billion in revenue for 2025.

Microvast expects 60% of the 2025 revenue to derive from Commercial Vehicle battery sales and 26% from battery components. The company also aims to target the “Rapidly growing (energy storage solution) market driven by storage applications, energy shifting and data centers”. Microvast expects energy storage revenue to grow to $254 Million by 2025 according to the companies forecasts.

Microvast stock forecast (NASDAQ:MVST)

As the company has only recently listed as a combined company, we are yet to see Wallstreet cover the companies valuation and earnings forecasts. However, as one of the leaders in lithium battery technology we can expect stock coverage within the next few weeks.

After a tough week for MVST investors, the stock price is currently hovering around $8.02. This means the stock is currently trading 20% lower than the PIPE price, which will likely drive up demand in shares from Microvast Bulls.

Interestingly, if analysts do price MVST above its current valuation we may see a swing in investor sentiment.

Microvast stock forecast

Microvast stock vs QuantumScape stock

In comparison to QuantumScape, Microvast holds a clear revenue advantage. Quantumscape expects to first generate revenue in 2024, which places Microvast vastly ahead of its competitor in terms of revenue.

By 2025, Microvast expects to generate $1.462 Billion while Quantumscape forecasts $39 Million in revenue for the same year. Here’s where it gets interesting. By 2028, Quantumscape expects revenue to grow exponentially to $6.4 Billion. This seems to even the playing field as Microvast expects to generate $3.831 Billion in 2027.

Nevertheless, the real advantage for Microvast stock is the companies high visibility in contracted revenue.

The Bottom Line – Microvast stock forecast for 2025

In summary, the Microvast stock forecast remains up for debate as we await coverage from Wallstreet institutions. Nevertheless, the companies high revenue visibility and positive growth is a gold token for shareholders.

Furthermore, the $822 Million boost in cash will provide Microvast the funding needed to address manufacturing, demand of its technology and to reduce the companies debt.

However, it is worth noting the current instability of the tech market is likely to influence the share price in coming weeks/months. Overall, Microvast stock is one to watch in 2021.

The information above is not financial advice. 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.

Subscribe to our Youtube channel here

We are now official partners with Tradingview

Firstly, Tradingview is a social network of 30 million traders and investors using the world’s best charts and analysis tools to spot opportunity in global markets. You can sign up to Tradingview by clicking the banner below. Tradingview allows you to follow your favorite assets, find trading ideas, chat with others, spot trends, and place trades directly on our charts.

Looking to start trading in Australia or the UK?

Do you live in Australia or the United Kingdom and looking to invest in the US market? Good news! We’ve partnered with Stake. Trade 4,500+ US stocks and ETFs with $0 brokerage and no fx fees per trade. Use our code “YIG” to receive a free stock when funding your new account.

In addition, Stake is one of the leading US trading platforms for Australian and UK investors. Click hereto start trading US stocks with a streamline trading experience. Lastly, for more information on our referral program and how it works click here.

Tesla stock forecast for 2025 – will it hit the $3,000 price target?

Tesla stock forecast for 2025 – will it hit the $3,000 price target?

Tesla stock (NASDAQ: TSLA) has continued its stellar run over the past year as the tech innovator continues to dominate the growing EV industry. Tesla’s stock price has risen 139% over the past 12 months, the stocks best performing trading period since its initial listing on Wallstreet.

However, the stock has been balancing around the $600 mark with investors now questioning if now is the time to capitalise. This article will breakdown everything investors need to know about the 2021/22 forecasts for the EV Goliath, Tesla.

Table of contents

What are analysts forecasting for Tesla stock?

Firstly, the price targets from analysts at larger institutions can provide investors deeper insight into the current “smart money” consensus. According to CNN data, across the board of 31 analysts the median 12 month price target is $754.50.

The price targets range significantly, with higher end targets suggesting targets as high as $1,471 and lows at $67 a share. With such a large differential between price targets, analysing recent targets from institutions will shed more light on Tesla’s 12 month outlook. The following key price targets from large institutions are listed below:

  • Canaccord Genuity 6/14/2021 – Analyst Jed Dorsheimer lowered the firms price target to $812 a share while maintaining a Buy rating.
  • Wedbush 6/6/2021 – analyst Daniel Ives maintained the firms 12 month price target to $1,000 a share. This illustrates an upside potential of 53% from the current trading price. Ives boosted the 12 month price target to $1,000 a share after delivery numbers for Q1 were released. The analyst noted the company could exceed 850,000 vehicles deliveries for the year based on current demand.
  • Robert W. Baird 5/27/2021 – Analysts reiterated their Buy rating with a price target of $736 a share.
  • Goldman Sachs 4/27/2021– Analyst Sharmini Chetwode boosted the banks Buy rating on Tesla stock with a price target of $860. The analyst noted the company is positioned well to capitalise on the EV trend as a leader in the industry.

Ark Invest sets $3,000 price target for Tesla stock by 2025

On March 19, analyst Tasha Keeney at Ark Invest released the firms updated price target on Tesla stock. Ark have set a $3,000 price target for 2025 which analyses both Bullish and Bearish scenarios.

Ark noted a Bullish target at $4,000 a share and a bearish target of $1,500 (both targets for 2025). In the Bull case thesis, Tesla will sell 10 million vehicles in 2025 whilst its bear case suggests 5 million vehicles sold.

ARK had also priced in the potential of Tesla’s insurance business over the next 5 years. With Tesla vehicles collecting real-time data, the company can underwrite the insurance risk of their vehicles.

ARK forecasts the company will turn over $23 Billion in revenue annually from its insurance products alone by 2025 (Bear Case Scenario).

Overall, ARK is known as a long standing Bull of Tesla stock and their $3,000 price target for 2025 solidifies the firms confidence in TSLA.

What this means for Tesla investors?

The general consensus across the board of analysts is slightly bullish, with institutional price targets for this month suggesting an average Buy rating.

However, it’s important to note over the past 6 months the average rating from analysts sat at a neutral/hold.

This does suggest institutions are practising caution with Tesla stock. Especially considering the current external factors influencing production including the semi-conductor crisis and US-China trade tensions.

Looking deeper into Tesla’s financial performance and forecasts

Firstly, the Q1 earnings for 2021 exceeded analyst expectations. The EPS was $0.93 per share whilst the expected EPS was $0.79 per share (17% surprise compared to analysts forecasts) .

It’s worth noting the positive results were assisted by the sale of $518 million in Regulatory Credits alongside the sale of a portion of Tesla’s Bitcoin reserves ($101 Million positive impact from sale). Revenue for Q1 grew by 74% YOY (compared to Q4 2019) which was achieved through strong delivery numbers for this quarter.

The deliveries for Q1 were 184,877 units in total, outstretching its Chinese competitor NIO 10+ fold.

Revenue forecasts for Tesla

Analysts predict Tesla’s annual revenue to increase on average by 55% for 2021. The revenue forecasts expects Tesla to generate on average $49.07 Billion in 2021 (as of 14/05/2021).

In addition, the average revenue forecast for 2022 is $65.71 Billion. The revenue forecasts suggest strong financial performance for Tesla as the EV market continues to grow in 2021/22.

Looking forward, ARK’s model as discussed above predicts Tesla to generate $507 Billion by 2025. This translates an EBITDA of $176 Billion for the same year. See ARK’s full revenue model here.

Barcelona, Spain. March 2018: Tesla inc cars flagship store near Passeig de Gracia luxury shopping street with Tesla logo and an electric cars model S and X inside

Whats in Tesla’s pipeline

  • Tesla plans to add at least one new service center every week in 2021. Tesla will continue to build charging stations to meet the increasing demand for the vehicles.
  • At this stage, Tesla will not accept Bitcoin as a form of payment for a Tesla vehicles due to environmental concerns. Elon Musk has stated on Twitter that the company may be looking into more energy efficient crypto-currencies in the future.
  • The company expects to grow deliveries by 50% or more over the next few years. In addition, Tesla will begin deliveries of Model Y vehicles made in Berlin in 2021.
  • Production in Fremont to reach full capacity in early 2021 according to Tesla.
  • The Semi Truck expected to begin deliveries in 2021.

The Bottom Line – Tesla stock forecast 2025

In conclusion, Tesla continues to divide the bulls and the bears with its future outlook in 2021 and beyond.

The bullish sentiment from analysts over the past month is a positive sign for long term shareholders. In addition, the positive revenue forecasts and continued delivery growth from Tesla is not to be undervalued.

However, investors should tread with caution as the EV industry has seen a fair amount of market volatility as of late. The semi-conductor crisis will also play an influential role in Tesla’s mid to long term future.

The information above is not financial advice. 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.

Subscribe to our Youtube channel here.

We are now official partners with Tradingview

Firstly, Tradingview is a social network of 30 million traders and investors using the world’s best charts and analysis tools to spot opportunity in global markets. You can sign up to Tradingview by clicking the banner below. Tradingview allows you to follow your favorite assets, find trading ideas, chat with others, spot trends, and place trades directly on our charts.

Looking to start trading in Australia or the UK?

Do you live in Australia or the United Kingdom and looking to invest in the US market? Good news! We’ve partnered with Stake. Trade 4,500+ US stocks and ETFs with $0 brokerage and no fx fees per trade. Use our code “YIG” to receive a free stock when funding your new account.

In addition, Stake is one of the leading US trading platforms for Australian and UK investors. Click hereto start trading US stocks with a streamline trading experience. Lastly, for more information on our referral program and how it works click here.

Square stock forecast – What does the $29 Billion Afterpay acquisition mean for investors

Square stock forecast – What does the $29 Billion Afterpay acquisition mean for investors

Square Inc. (NYSE:SQ) has made waves on Wallstreet after announcing a $29 Billion acquisition with Australian Buy-Now-Pay-Later company Afterpay. The all-share acquisition will enable Square to effectively” accelerate Square’s strategic priorities for its Seller and Cash App ecosystems”.

Square aims to integrate AfterPay services to their Cash app. The Cash app currently has over 40 Million active users, exposing AfterPay services to US and UK customers.

Square stock has traded sideways over the past month, gaining 2.56% for the trading period. However, the addition of Afterpay will widen the companies revenue stream which may see a shift in investor and Wallstreet sentiment. Here’s what this news means for the Square stock forecast.

What the Afterpay merger means for Square investors

The proposed acquisition aims to accelerate three main strategic levers for the company. Under the terms of the deal, Afterpay shareholders (ASX:APT) will receive a fixed exchange ratio of 0.375 shares of Square Class A common stock for each Afterpay ordinary share they hold on the record date.

As the transaction is all-share, the bears are now raising concerns over dilution in comparison to an all-cash acquisition which does not dilute the amount shares outstanding. Nevertheless, the bulls are focusing on the long term implications based on three strategic levers.

Square to acccelerate Cash App growth

The first strategic lever is to Enhance both the Seller and Cash App ecosystems. Afterpay’s global merchant will accelerate Square’s growth with larger sellers and expansion into new geographies according to Square. Square’s Cash app delivered $546 million in the second quarter, growing 94% YOY.

Secondly, the acquisition will Bring added value, differentiation and scale to Afterpay. As the Buy Now Pay Later industry heats up, AfterPay will benefit from the scale Square can offer.

Afterpay consumers will also receive the benefits of Cash App’s financial tools. This includes money transfer, stock and Bitcoin purchases according to Square.

Lastly, the acquisition will Drive long-term growth with meaningful revenue synergy opportunities. More importantly, for Square shareholders the good news is the company expects to see gross profit growth with a modest decrease in Adjusted EBITDA margins.

This financial improvement is expected in the first year post acquisition. Square will be the beneficiary of AfterPays strong growth, with a Compound annual growth rate (CAGR) of 86% over the past two years.

The acquisition is expected to take place in the first quarter of 2022. The acquisition will require approval by the shareholders of both companies as well as meeting all regulatory requirements.

BAYONNE, FRANCE – CIRCA JANUARY 2021: Cash app icon on Apple iPhone screen. Cash App is a mobile payment service developed by Square, Inc.

Square stock forecast for 2021

Across the board of 37 Wallstreet analysts, 64% of analysts have listed a Buy rating on the stock. The average price target currently stands at $281.76, representing an upside of 14%. For comparison, competitor Paypal holds a slight advantage with an average target representing an upside of 20%.

BTIG analyst Mark Palmer notes the proposed acquisition will see Square making a big splash in the “buy now, pay later” space. The analyst currently has a Buy rating on the stock with a price target of $295 a share. The bullish target represents an upside of 19% from the current trading price.

Palmer added that Square also outperformed consensus estimates in Q2 highlighting a beat in operating revenues, gross profit and adjusted earnings per share according to theFly.

Q2 results illustrate strong revenue growth

In the second quarter, Square recorded a total $4.68 billion in revenue, up 143% YOY. In particular, the Cash App delivered $3.33 billion of the total revenue, growing 177% YOY.

However, excluding Bitcoin the cash app generated only $606 million in the second quarter. The large portion of Bitcoin revenue generated from the Cash App was as a result of increased customer demand and rising Bitcoin prices.

Square warned investors in the second quarter shareholder letter that Bitcoin revenues are likely to fluctuate as they expect changes in customer demand.

Furthermore, the companies seller ecosystem generated $1.31 billion in revenue. This represents a YOY growth of 81%, highlighting a slower growth rate of the Cash App segment. Nevertheless, its seller ecosystem has rebounded strongly from the effects of COVID-19 in 2020.

Square shareholders can be at ease with the companies liquidity. The company has $7.1 billion in available liquidity, with $4.58 billion in cash and cash equivalents. The cash in hand has improved 47% compared to Q4 of 2020.

Cash App is a mobile payment service developed by Square, Inc., allowing users to transfer money to one another using a mobile phone app.

Square stock forecast – Revenue outlook

The average revenue forecast for 2021 from analysts expects Square to generate $20.01 Billion annually. This would suggest a realised improvement YOY of 110%.

The main driver for the positive revenue forecast is the Cash App. The company noted in Q3, they expect the Cash App’s gross profit to grow by 212% YOY.

Furthermore, analysts expect this growth to continue into 2022, with forecasts predicting Square to generate $22.83 Billion annually according to Yahoo Finance data.

It is worth noting that the 2022 forecast is expected to change if the acquisition is realised.

Whats the risk for Square stock investors

As we have seen throughout history, an all-share acquisition will see the target stock rally and the acquiring stock fall. Why is this?

With an all-share transaction, the acquirer is offering shares to existing target shareholders instead of instead using cash to pay existing shareholders. In todays era, we tend to see a mixture of both cash and share offers to target shareholders.

In this case, we will likely see an initial downtrend in Square stock as investors prepare for the shares outstanding to increase upon the close of transaction. Nevertheless, the acquisition is a long term strategy to boost revenues and hence increase the share price. This is the trade off the acquiring shareholders face in acquisitions like these.

The Bottom Line – Square stock forecast

Overall, the proposed acquisition looks to provide Square some strong long term benefits including increased revenue and gross profit alongside a wider offering for existing customers.

Square currently maintains a bullish sentiment on Wallstreet with an average upside of 14%. However, we may see the analysts lower their targets as the company closes in on the merger based on dilution of stock.

This of course is the risk, while long term shareholders will focus on the big picture. If shareholders are looking for more information on AfterPay, click here.

The information above is not financial advice. 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.

Subscribe to our Youtube channel here.

We are now official partners with Tradingview

Firstly, Tradingview is a social network of 30 million traders and investors using the world’s best charts and analysis tools to spot opportunity in global markets. You can sign up to Tradingview by clicking the banner below. Tradingview allows you to follow your favorite assets, find trading ideas, chat with others, spot trends, and place trades directly on our charts.

Looking to start trading in Australia or the UK?

Do you live in Australia or the United Kingdom and looking to invest in the US market? Good news! We’ve partnered with Stake. Trade 4,500+ US stocks and ETFs with $0 brokerage and no fx fees per trade. Use our code “YIG” to receive a free stock when funding your new account.

In addition, Stake is one of the leading US trading platforms for Australian and UK investors. Click hereto start trading US stocks with a streamline trading experience. Lastly, for more information on our referral program and how it works click here.

AMD stock forecast (NYSE:AMD): Is now the time to buy AMD?

AMD stock forecast (NYSE:AMD): Is now the time to buy AMD?

Go ahead long-term AMD (NASDAQ:AMD) investors, it’s time to take a long awaited and well-deserved victory lap. With all due respect to NVIDIA (NASDAQ:NVDA), AMD has been the hottest semiconductor stock in recent months, and a knock out second quarter earnings report sealed the deal for shares to hit new all-time highs.

But after running up 10% in the last month and 13% this week alone, is AMD still a buy? Or have investors missed the breakout for AMD?

If you have held AMD through the years, you are the definition of believing in the fundamentals of a great company and holding for the long-term.

Let’s ignore the fact that AMD actually IPO’d back in 1979, well before semiconductors were used as frequently as they are today. Even if we take the last ten years of AMD’s stock chart, shares traded mostly sideways until 2019.

It’s only been in the past year or two that AMD has broken out, which tells me that something has fundamentally changed in the trajectory of the company. AMD is experiencing rapid growth over a short period of time, and the behavior of the stock itself is heading in a new direction: up. 

AMD Smashes Wall Street Estimates in Q2

If you want to know what has fundamentally changed with AMD’s stock, it all begins with a year over year growth in revenues of 99% to $3.85 billion. This also marked a 93% sequential growth from Q1 of 2021, a staggering acceleration considering the world is mired in a global semiconductor shortage.

On the call, CEO Dr. Lisa Su noted that she was able to get extra supply from the chip fabrication partners, a savvy move by a CEO that is only starting to get the praise she deserves on Wall Street.

It was also the first quarterly earnings call since the company acquired semiconductor company Xilinx, and the completion of that deal also seems to be gaining the attention of AMD bulls. 

A lot has changed from the version of the company who was a laggard in the chip industry. AMD is impressively profitable now, with gross margins hitting 22% and total free cash-flow of $888 million for the quarter. How has AMD turned the ship around?

With lucrative contracts for its quality products. AMD noted that half of the supercomputers in the world are powered by its data center CPUs, an industry that has been dominated by NVIDIA until now.

With partnerships with Google Cloud, the latest gaming consoles in the Playstation 5 and XBox Series X and Series S, GPUs in Apple Macbooks, and even providing the GPU for Tesla cars, AMD has stacked its portfolio with some of the biggest names in the tech industry.

Wallstreet upgrades AMD stock after earnings

After a strong Q2 performance, Wallstreet analysts were quick to upgrade the stocks 12 month price targets. Across the board of 28 Wallstreet analysts, the average price currently stands at $107.36 which suggests a slight upside.

However, for targets released after the earnings the average is bolstered up to $114.54 a share representing an upside of 11.26%.

Rosenblatt analyst Hans Mosesmann raised AMD’s price target to a street high of $150 a share. Mosesmann noted the Q2 beat was “even more compelling” given industry supply chain shortages. The analyst highlighted the significance of AMD’s sales growth for 2021 which surged to 60% level from 50% on broad-based demand.

Analyst Christopher Rolland at Susquehanna also raised their price target on AMD to $130 a share, representing a 26% upside. Rolland said he anticipated strong results and guidance but he had not expected the company to “navigate supply constraints flawlessly and raise full year expectations” according to theFly.

The Bottom Line – AMD Stock Forecast 2021

It’s not just investors who are falling back in love with AMD, Wall Street is too. Three key analyst upgrades have accompanied AMD’s ascension, including a price target raise from Goldman Sachs to $115, and Susquehanna providing a price target of $130.

AMD is a completely different company from the one who trailed Intel (NASDAQ:INTC) for years, and so, the stock behavior should be treated differently before and after 2019.

AMD is now in rapid growth mode as it battles with NVIDIA for the lead in the semiconductor industry.

Only, rather than trading at high multiples and remaining unprofitable, AMD is nearing $1 billion per quarter in free cash flow, and holds an A-list portfolio of partners that should help carry AMD’s stock higher over the next decade. 

Edited by Tyger Fitzpatrick, Founder of Youth Investment Group.

See the NVIDIA stock forecast here

https://youth-investment-group.com/2021/05/24/nvda-stock-forecast-for-2021-the-bulls-take-charge/

The information above is not financial advice. 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.

Subscribe to our Youtube channel here.

We are now official partners with Tradingview

Firstly, Tradingview is a social network of 30 million traders and investors using the world’s best charts and analysis tools to spot opportunity in global markets. You can sign up to Tradingview by clicking the banner below. Tradingview allows you to follow your favorite assets, find trading ideas, chat with others, spot trends, and place trades directly on our charts.

Looking to start trading in Australia or the UK?

Do you live in Australia or the United Kingdom and looking to invest in the US market? Good news! We’ve partnered with Stake. Trade 4,500+ US stocks and ETFs with $0 brokerage and no fx fees per trade. Use our code “YIG” to receive a free stock when funding your new account.

In addition, Stake is one of the leading US trading platforms for Australian and UK investors. Click hereto start trading US stocks with a streamline trading experience. Lastly, for more information on our referral program and how it works click here.

Boeing stock forecast – is the stock a buy after profitable earnings?

Boeing stock forecast – is the stock a buy after profitable earnings?

Boeing stock (NYSE:BA) is beginning to gain some bullish traction on Wallstreet as the stock rebounds from the steep COVID-19 sell off in March last year. To add context, Boeing stock collapsed below $100 for the first time since 2013 as the market tumbled.

However, the company shocked investors on Wednesday as Boeing reported their first profitable quarter since the pandemic. Boeing reported earnings beat EPS expectations by producing an EPS of $0.40. In comparison, analyst consensus was forecasting a negative EPS of ($0.83).

Wallstreet institutions are now targeting upside potential in the stock over the next 12 months. In particular, Analyst Noah Poponak at Goldman Sachs raised the firms target price to $307, suggesting an upside of 28.9%.

So let’s breakdown everything investors need to know about the Boeing stock forecast for 2021 and beyond.

Is Wallstreet bullish on Boeing stock?

Firstly, price target valuations from financial institutions can give investors some insight into how Wallstreet views the midterm outlook on a stock. Across the board of 24 Wallstreet analysts, the average 12 month price is $261.38 (an 17.5% upside from the current trading price).

Across Wallstreet, 14 of these analysts have listed a Buy rating on the stock. Goldman Sachs, UBS and the Royal Bank of Canada have listed “street high” targets all above $300.

So what makes these institutions confident the stock will rebound 25% or more over the next 12 months.

Boeing stock forecast

Morgan Stanley boosts target to $274

Morgan Stanley analyst Kristine Liwag boosted the firms 12 month price target to $274 a share. Krtistine noted that the Boeing 737 tracker was showing a substantial increase in domestic flights in April.

The increase in domestic Boeing activity is both a positive for Boeing and the airline industry. The upgraded target represents a healthy upside of 23%.

Goldman Sachs raised Boeing’s stock price target to $307

Analyst Noah Poponak recently maintained the firms Buy rating on Boeing stock with a 12 month price target of $307 a share. The analyst noted that Boeing’s backlog will soon begin to grow as orders pick up and cancellations decline.

Poponak has been a long term bull on Boeing stock. The analyst noted in September last year Boeing stock is a “rare cyclical investment opportunity ahead of eventual end-market improvements” according to theFly.

UBS analysts set street high target for Boeing stock

In late April, Analyst Myles Walton at UBS increased the firms 12 month price target to $310, maintaining a Buy rating. The target remains the highest valuation on Wallstreet.

Walton noted to investors that the effectiveness of the coronavirus vaccine has catalyzed the beginning of an aerospace upcycle according to Benzinga. In addition, Boeing has historically performed extremely well during that early cycle period.

Boeing stock rebounds after positive Q2 earnings

In the second quarter Boeing recorded $16.998 Billion in revenue (YOY increase of 44%). The increase in revenue was driven by higher commercial airplanes and services volume.

In addition, the companies commercial airplane backlog grew to $285 billion with an additional 180 net orders. Boeing was able to deliver 79 commercial airplanes, which was a 295% increase YOY.

“We continued to make important progress in the second quarter as we focus on driving stability across our operations and transforming our business for the future,” said Boeing President and Chief Executive Officer David Calhoun.

Revenue forecast for Boeing stock

Across the board of 21 Wallstreet analysts, the average revenue forecast expects Boeing to generate $78.93 Billion in 2021 (35% annual increase YOY if realised).

To put this figure into perspective, Boeing generated $76.55 Billion in 2019 prior to COVID-19. Therefore, Boeing may beat its pre-pandemic performance assuming demand continues to increase.

Looking further ahead, analysts expect Boeing to capitalise in 2022 with revenue increasing to $89.23 Billion.

The Bottom Line – Boeing stock forecast

In summary, the bullish momentum from Wallstreet is a positive sign for long term investors that held through the sharp dip last year. With revenue expected to beat the 2019 annual performance, we can see why Analyst Noah Poponak is Bullish.

However, further FFA mandated fixes to the 787 Dreamliner may expose the stock to additional volatility. We will continue to update our viewers on Boeing stock as we move through 2021.

Written by Tyger Fitzpatrick, Founder of Youth Investment Group.

The information above is not financial advice. 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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Clover Health stock forecast (NASDAQ:CLOV) – is there upside potential?

Clover Health stock forecast (NASDAQ:CLOV) – is there upside potential?

Clover Health Investments Corp (NASDAQ: CLOV) has struggled over the past month, declining by 33%. Despite the recent decline, Clover is the fastest growing Medicare Advantage insurer in the United States. The company serves more than 66,300 members all in the United States. Clover Health stock initially caught the attention of investors after SPAC Billionaire Chamath Palihapitiya announced his intentions to make the company public via a reverse merger. Now trading as a public company, we will breakdown what investors need to know about Clover Health’s stock forecast for 2022.

Table of contents

What are analysts forecasting for CLOV stock in 2022?

Firstly, the general consensus amongst Wallstreet analysts is neutral with the average 12 month price target is $10.60 a share (28% downside). Here are recent price targets investors should know about:

JP Morgan & Chase 7/12/2021 – Analyst Lisa Gill downgraded CLOV’s 12 month price target to $9 a share with an Underperform rating. “We are downgrading shares of CLOV to Underweight from Neutral following 1Q21 results in which the company lowered most guidance metrics, including reducing the number of aligned beneficiaries under the direct contracting program in 2021 by 50%,” the bank’s analysts wrote.

Bank of America 6/10/2021 – Analyst Kevin Fischbeck downgraded the companies rating to a Underperform with a $10 price target after the release of the Q1 earnings.

Credit Suisse Group 5/19/2021 – Analyst Jailendra Singh lowered the price target on the stock to $9 valuation. The analyst noted to investors earlier this year that there is long term potential in the Medicare Advantage industry. However, broader market volatility in growth stocks coinciding with the concerns raised from Hindenburgs short seller report in February have caused volatility in the stock (according to TheFly report).

CitiGroup 5/18/2021 – Analyst Ralph Giacobbe lowered the firms price target from to $10 a share. CitiGroup maintained their Buy rating on the stock.

What this means for CLOV investors?

As we can see, the general sentiment across the board of analysts is conservative with 2 Sell ratings, 1 Hold and 1 Buy. With the average price target at $9.50 a share, there is only a slight 1.86% upside from the current trading price. The lower revenue guidance noted in Clover’s Q1 earnings has been a key driver in bearish sentiment across the board of analysts. If Clover can reiterate stronger guidance in the next few quarters we may see an increase in valuations.

CLOV Chart by TradingView


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How is Clover financially performing in 2021?

Firstly, Clover Health performed strongly in regards to revenue in 2020. The company generated $673 million, a 46% YOY improvement. The revenue growth is a bi-product of its growing membership base, up 36% YOY. In the first quarter of this year, the company reported $200.3 Million in revenue, a 21% improvement YOY. Clover also reported a healthy cash position of $720.1 Million as a result of the merger.

However, the companies net loss widened by 261% YOY in Q1 which did impact the share price significantly. Clover initially predicted an annual EBITDA net loss between $150 Million – $190 Million for 2021, however in the most recent guidance the company expects this to possibly widen to $240 Million. Investors and institutions did not respond well to this notice, which was a factor in the downtrend of the stock.

“Our 2020 results demonstrate our ability to deliver revenue and membership growth, while improving management of the cost of care for our members and driving further operating leverage.”

Clover Health’s CFO, Joe Wagner on Full Year results for 2020

Looking forward at Clovers revenue growth

The revenue outlook in 2021 according to analysts forecasts Clover to generate $819 Million. In comparison, the October 2020 investor presentation forecasted 2021 revenue to be closer to $880 Million. Nevertheless, the $819 Million forecast would represent a healthy YOY increase of 22%. Looking further ahead, the company expects to generate $1.21 Billion in Gross Revenue for 2022 and $1.7 Billion in 2023 (according to Clover’s Investor presentation). In addition, the company expects to have over 450,000 members by 2023.

The risks associated with Clover stock

There is no reward without the associated risk attached. This remains true for the high growth sector of the market. As we have seen over the past 4 months, the high growth sector (including merged SPAC companies) tend to carry high volatility. The recent downtrend of Clover Health stock has pushed the companies stock price below its PIPE offering price of $10. As discussed by analyst Jailendra Singh, the volatility of CLOV stock has left analysts neutral (for now) on the midterm performance of the company.

Summarising Clover’s stock forecast

In conclusion, the current trading price of Clover Health is on par with current analysts expectations. Furthermore, the revenue forecasts although reduced for 2021 still represent a 22% YOY growth if they hold true for the remainder of the year. However, the volatility of the stock has been ongoing and is definitely a factor in the midterm outlook of Clover stock. A widening net loss has impacted the share price so far in 2021. Therefore, all eyes will be on the Q2 earnings guidance to determine if the net loss can be improved. We will continue to update our viewers on Clovers performance as we move through 2021.

Written by Tyger Fitzpatrick, Founder of Youth Investment Group.

The information above is not financial advice. 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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Carnival Crusie (NYSE: CCL) and Royal Caribbean (NYSE:RCL) stock forecast for 2021

Carnival Crusie (NYSE: CCL) and Royal Caribbean (NYSE:RCL) stock forecast for 2021

Carnival Cruise (NYSE: CCL) and Royal Caribbean (NYSE:RCL) have rebounded strongly over the past 12 months, gaining 55% and 65% respectively. The lasting impact of COVID-19 on the cruise line industry has been significant with both companies halting operations in mid march last year. Since then, both companies have focused on minimal cash burn while the United States gets vaccinated. Carnival Cruise expects to run at 50% capacity with 42 ships by November 2021. Royal Caribbean have announced new itineraries for this summer for eleven additional ships from the Caribbean and Europe in addition to the four ships already sailing. This article will breakdown everything investors need to know about CCL and RCL stock forecasts.

JP Morgan Analysts are bullish on CCL and RCL stock

Analyst Brandt Montour and Joseph Greff from banking giant JP Morgan have noted a bullish outlook for both cruise line companies over the next 12 months. Last week Analyst Joseph Greff boosted CCL’s 12 month price target to $36 a share with a neutral rating on the stock. The target represents an upside of 38% from the current trading price.

However, JP Morgan has noted out of the US listed cruise line trio (RCL, NCHL & CCL) that Royal Caribbean is currently their preference. Analyst Brandt Montour boosted Royal Caribbean’s 12 month price target to $123 a share. The target represents a 53% upside and remains the street high target amongst analysts.

“Of the three, we continue to prefer RCL, based on comparatively impressive restart momentum, recent share underperformance, and longer term operational/pricing momentum that we expect to continue post-COVID-19,” noted JP Morgan in a statement.

Revenue outlook for CCL and RCL stock

Over the past 15 months, the cruise line industry has remained a volatile and uncertain prospect due to COVID-19. With cruise lines now eyeing off a full capacity launch by next spring, analysts have now updated their revenue outlook. The average revenue forecast for CCL in 2021 estimates the company to generate US$3.64 Billion. The forecast represents a YOY revenue decline of 35%. By 2022, revenue is expected to climb to $18.4 Billion which represents a YOY increase of 400% based on the 2021 forecast.

For Royal Caribbean (RCL), analysts expect the company to generate $2.2 Billion in 2021. In addition, analysts expect upwards of $10 Billion in revenue by 2022 (YOY increase of 350% based on 2021 forecasts). Based on the above consensus, RCL and CCL are expected to both bounce back strongly in the fiscal year of 2022. However, based upon the current uncertainty surrounding the new delta COVID strain these forecasts may vary significantly over the next 6-12 months. In saying this, with US leading in COVID-19 vaccination the threat of COVID-19 is significantly less compared to 12 months prior.

Financial strength of CCL and RCL

The cruise line industry has been at bay over the past 15 months. Therefore, it is important to understand the current cash positions of each business. Firstly, Royal Carribean noted in their Q1 earnings release that the cash burn rate for the quarter was $300 Million. The company noted the more than expected cash burn rate was due to “fleetwide restart expenses and timing.” In addition, the company noted they currently have $5.1 billion in cash and cash equivalents.

“We are prepared and eager for the flywheel to start turning again… Moreover, we are optimistic that with the gradual resumption of cruise operations, our cash flow from operations will sequentially improve, driven by an increase in the inflow of customer deposits” said Jason T. Liberty, executive vice president and CFO.

For Carnival Cruise line, the average monthly cash burn rate for the first half of 2021 was $500 Million. The company noted this was better than expected due to “to the timing of proceeds from ship sales and working capital changes.” Carnival noted a cash position of $9.3 Billion according to the Q2 earnings report. CCL is still confident they have adequate cash to get back to full capacity operations.

“We believe we have sufficient liquidity to get us back to full operations and continue to be focused on pursuing refinancing opportunities to reduce interest rates and extend maturities.” Carnival Corporation & plc Chief Financial Officer David Bernstein noted

Summary

In summary, both CCL and RCL stock look to bounce back strongly in 2022 based upon the current Wallstreet analyst consensus. With fast vaccination rates in the US, we can conclude that the outlook from both companies to run at capacity by spring 2022 is a reasonable assumption. However, the risk of the new delta strain may swing investor sentiment at least for the next few months. Both CCL and RCL will be stocks to watch over the next 6 months as they prepare for a full recovery.

The information above is not financial advice. 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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Ocugen stock forecast (NASDAQ:OCGN) – what investors need to know

Ocugen stock forecast (NASDAQ:OCGN) – what investors need to know

Ocugen Inc (NASDAQ: OCGN) is a US based bio-pharma which has focused on developing a cure for blindness disease. However, the company has since shifted its efforts to develop a COVID-19 vaccine with partner Bharat Biotech. Ocugen’s CEO Shankar Musunuri has made it clear the company strategises to disrupt the current COVID-19 vaccine market with Covaxin.

As a result, the OCGN stock price has seen a 3,248% gain over the past year of trading. The price movement of OCGN has been highly volatile as the company recently disclosed they will no longer pursue a US Emergency Use Authorization (EUA) for Covaxin after advice from the FDA. However, Ocugen did recently announce a rolling submission to Health Canada. Health Canada will begin a review of the safety and efficacy of COVAXIN in recent trial data. With many questions to be answered, this article will breakdown everything investors need to know about the Ocugen stock forecast.

Table of contents

Ocugen and Bharat Biotech’s COVID-19 Vaccine

Firstly, the company recently announced that the anticipated EUA submission is no longer on the cards, with the FDA recommending that Ocugen pursues a biologics license application (BLA) instead. If approved, this allow for Covaxin to enter the US market and challenge the current COVID-19 vaccine leaders. The recent data from Bharat Biotech’s Phase 3 trial shows an overall efficacy of 77.8% against COVID-19. The trial data also illustrated a 65.2% efficacy against the new delta variant that is spreading across the UK and Australia.

In addition, the Indian Council of Medical Research (ICMR)-National Institute of Virology have also released data supporting that Covaxin has demonstrated potential effectiveness against the Brazil variant along with UK variant and India double mutant variant.

“As we brace ourselves for the potential next wave of COVID-19 outbreaks from the Delta variant, reporting of the final efficacy analysis from this Phase 3 study comes at a crucial time.  We expect these efficacy and safety outcomes, along with demonstrated efficacy against emerging variants of concern, will support our initiatives to bring COVAXIN™ to the US and Canadian markets,” said Dr. Shankar Musunuri, Chairman of the Board, Chief Executive Officer, and Co-founder of Ocugen.

Is Wallstreet bullish on OCGN stock?

Firstly, across the board of Wallstreet analysts the general consensus is a Buy. The average 12 month price target from analysts is at $7.88 a share according to MarketBeat data. Prior to the companies COVID-19 vaccine developments, the companies average price target was around $0.98 a share. This suggests analysts can see the upside in the companies shift of resources towards Covaxin distribution in the US and Canada. Here are the most recent price targets from this year from institutional analysts:

HC Wainwright 6/11/2021 – Analyst Swayampakula Ramakanth lowered the companies 12 month price target to $10 a share. However, the firm maintains a Buy rating on the stock.

Roth Capital 6/10/2021 – Analysts Zegbeh Jallah lowered the firms 12 month price target to $6 a share. In addition, Roth Capital downgraded their rating on the stock to Neutral.

Chardan Capital 6/10/2021 – Analysts at Chardan Capital lowered their 12 month price target to $4.50 a share with a neutral rating.

Cantor Fitzgerald 5/13/2021 – Kristen Kluska lowered the firms 12 month price target from $15 to $11 a share. Cantor Fitzgerald also downgraded their rating from overweight to neutral. This suggests analysts are practising caution with the stocks current valuation.

Covid-19 vaccine

Revenue outlook for Ocugen over the next year

Ocugen’s agreement with Bharat Biotech states Ocugen will receive 45% cut of the sales made in the US and Canada if the BLA is approved. The risk is that Ocugen does not receive approval and the revenue outlook for the company will be worth a lot less. In addition, the application for the BLA is going to push the potential revenue back further. With this in mind, Analysts expect that Ocugen will not generate any revenue for the remainder of this year.

By 2022, analysts forecast OCGN to generate $153 Million in revenue. It is important to note prior to the companies decision to pursue a BLA, analysts expected OCGN to generate upwards of $900 Million by 2022. The steep revenue downgrade is a bi-product of the delays that will be issued as a result of the BLA route the company is taking after FDA advice.

Risks involved with Ocugen stock

As we have seen over the past month of trading, Ocugen has been highly susceptible to volatility. However, the high volatility is not new to the COVID vaccine industry. The main driver is the vast speculation from investors regarding the performance of the vaccine.

Ocugen stock suffered a large hit after the EUA was not submitted, which was a primary focus for the company. Therefore, the overall outlook on the companies vaccine efforts in 2021-22 is still unknown. Ocugen has also expanded their commercialisation rights in Canada and will simultaneously seek authorisation under interim order for use in Canada.

In addition to the EUA concerns, the company is now facing lawsuits as a result. The Thorton law firm noted in a statement that Ocugen failed to advise or mislead investors that (i) the information that Ocugen submitted to the U.S. Food and Drug Administration (“FDA”) was insufficient to support an Emergency Use Authorization (“EUA”); and (ii) Ocugen would not file an EUA with the FDA.

Ocugen Stock Forecast Summary

In conclusion, the momentum has decayed after the announcement of the BLA pathway. However, the companies COVID-19 vaccine data suggests a niche within the market, addressing the global concern over COVID variants. As discussed the involved risks associated with the evolving COVID-19 vaccine market and the outstanding lawsuits against the company will play a influential role in the sustainability of the current valuation.

The information above is not financial advice. 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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Plug Power stock forecast (NASDAQ:PLUG) – Q1 revenue grows by 76%

Plug Power stock forecast (NASDAQ:PLUG) – Q1 revenue grows by 76%

Plug Power (NASDAQ:PLUG) stock 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 7% YTD. In saying this, Plug Power does offer investors a unique investment opportunity within the hydrogen energy industry. Plug’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, this market 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 Plug stock and analyse the companies forecasts moving into the new age of zero carbon energy.

What are analysts saying about Plug stock?

The average 12 month price target for PLUG stock is currently $46.59 a share, up from $37 a share in January. 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%. We rarely see analysts update their 12 month price targets this consistently. At the current trading price of $29.85, the average upside from the following targets is 56%.

Price Targets from Institutional Analysts

Morgan Stanley 5/28/2021 – analyst Stephen Byrd boosted the firms price target at $36 a share, an upside of 24%. Morgan Stanley holds an equal wight rating on the stock. 

BTIG Research 5/27/2021 – analyst Gregory Lewis initiated coverage on Plug Powers stock with a Buy rating. Analysts set the 12 month price target for Plug Power at $40 a share,  suggesting an upside potential of 37% from the current trading price. The buy rating and bullish price target illustrates the firms bullish positioning on Plug Power stock.

Barclays 5/24/2021 – analyst Moses Sutton lowered coverage with a price target at $24 a share, which is the streets lowest target. The company also has an underweight rating on Plug Power stock.

Truist 3/23/2021 – analyst Tristan Richardson dramatically lowered the companies price target coverage from $80 a share to $42. Truist currently maintains a Hold rating on Plug Power stock. The catalyst of the downgrade was Plug Power’s announcement regarding re-stating their financial statements from 2018-2020. 

“We have been generally constructive on the company’s fundamental outlook long-term… (But) following these disclosures we expect limited opportunity for outperformance in the near-term.” said Richardson in a note to investors.

How did Plug Power perform in 2020?

Firstly, Plug Powers Q4 performance saw the company post a negative revenue of $100 million. Now you may ask how this is possible? Plug Power had issued certain warrants in the past to customers as a rebate of sorts. These warrants let customers of Plug Power such as Amazon and Walmart, execute PLUG stock at a very low price (locked in price) compared to its current valuation.

Now the value of these warrants has far exceeded the purchases made by Plug Powers customers due to the sheer growth in the stock price. This results in a negative revenue from an accounting perspective. This Nasdaq article goes into more detail regarding the warrants issued by Plug Power. 

Plug Power also reported record gross billings last year, with $96.3 million in Q4 and $337.4 million annually. The company also noted their strong balance sheet position, with over $5 Billion in Cash. The cash position will allow Plug to execute its global growth strategy to be the leader in the emerging hydrogen economy. 

Plug Power releases Q1 earnings

On June 22, Plug Power released their highly anticipated Q1 earnings results. Plug Power outperformed their expected revenue target of $67 million, with net revenue recorded at $72 Million. The first quarter revenue performance represents a YOY increase of 76%. The company reinforced their gross billings guidance for 2022 with a target of $750 Million.

See Q1 earnings report here

What are the revenue forecasts moving into 2021 and beyond?

Revenue forecasts from analysts look steady moving into 2021. The average revenue forecast for Plug Power in 2021 is $469 million according to Yahoo Finance data. In addition to strong annual growth in 2021, Plug Powers revenue is expected to improve further to $735 million in 2022. By 2024, PLUG is expected to post $1.7 Billion in annual revenue. It is clear the long term revenue expectations from analysts remains positive.

The company also re-affirmed their revenue guidance for 2024. They increased their expected operating income to $200 million and an adjusted $250 million EBITDA. In contrast, the EPS predictions for 2021 are conservative, with an expected improvement of 17% YOY however this is subject to change upon further guidance.

What’s in the pipeline for 2021 and beyond

During the height of the pandemic, Plug Power moved 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 what’s in the pipeline for Plug stock in 2021:

“With the acquisitions of United Hydrogen and Giner ELX, Plug Power is now positioned to be a global leader in generation, liquefaction and distribution of green hydrogen fuel”

Summary

In conclusion, there is no doubt Plug Power has received bullish sentiment from analysts and smart money institutions. With the restatement of previous earnings now completed, the business can now focus in on meeting their key objectives in 2021. However, PLUG stock has displayed a high level of volatility over the past few months, which is a factor of risk associated with the stock and its industry.

Written by Tyger Fitzpatrick at Youth Investment Group

Disclosure: The author of this article has a long term position in Plug Power stock at the time of writing.

The information above is not financial advice. 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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