Plug Power's Uphill Battle: Analyst Warns of Increasing Challenges

Subscribe to Newsletter

Plug Power's Uphill Battle: Analyst Warns of Increasing Challenges

24.01.2024 24 January 2024
4481
2 min.
4 connections

flickr.com

Plug Power's Uphill Battle: Analyst Warns of Increasing Challenges

Navigating the Energy Maze

Plug Power Inc. experienced a remarkable 31% surge in its shares on Tuesday following the announcement of a new funding arrangement in the alternative energy sector. Despite this, BMO Capital Markets analyst Ameet Thakkar has adopted a bearish stance on the company's stock, expressing skepticism about brighter prospects.

In a report issued on Wednesday, Thakkar acknowledged certain "positives" revealed during the company's recent business update call. However, he also pointed out what he perceives as an "increasingly arduous path" between the present moment and the potential receipt of funds from the Department of Energy's discussed loan facility.

"While it might be tempting to believe that we are closer to the light at the end of the tunnel following a challenging period for PLUG shares after [Tuesday’s] call, we exited with more concerns," Thakkar wrote.

Thakkar expressed doubts about the feasibility of Plug Power's timeline for securing the Department of Energy loan, deeming it "fairly optimistic." He emphasized that despite the company's efforts to address financial challenges, such as a significant year-over-year improvement in negative cash flow from operations and reduced capital expenditures, there is still downside risk to PLUG shares.

Acknowledging the company's strategic move to cut back on capital spending and prioritize transactions that are "immediately" accretive to free cash flow, Thakkar labeled these actions as "overdue." However, he maintained his belief that the company might need to issue "hundreds of millions of equity" in the first quarter due to revenue pressures, potentially putting downward pressure on the stock.

Last week, Plug Power announced an agreement to sell up to $1 billion in common stock through an at-the-market issuance sales agreement with B. Riley Securities.

In response to these concerns, Thakkar downgraded his rating from market-perform to underperform and adjusted his price target from $3.50 to $2.50. As of Wednesday morning trading, the stock was down more than 2% after an initial opening higher.

Plug Power

#200
United States Department of Energy (DOE)

#1388
B. Riley Financial

#2137
BMO Capital Markets

#2867

Tags:

Section: business

<!-- advertisement 10-->
<div class="mobileShow">
<script>
  atOptions = {
    'key' : '33fb986b72fdc254fb0c1e79be22e3ec',
    'format' : 'iframe',
    'height' : 250,
    'width' : 300,
    'params' : {}
  };
</script>
<script src="https://www.highperformanceformat.com/33fb986b72fdc254fb0c1e79be22e3ec/invoke.js"></script>
</div>
<div class="mobileHide">
<script>
  atOptions = {
    'key' : '60966449084d21264769e3d9bdff986a',
    'format' : 'iframe',
    'height' : 90,
    'width' : 728,
    'params' : {}
  };
</script>
<script src="https://www.highperformanceformat.com/60966449084d21264769e3d9bdff986a/invoke.js"></script>
</div>

9 December 2024

politics

Oprah Interview, Vegas Sphere: Harris Campaign's $1B Spending

The Billion-Dollar Defeat Kamala Harris’ presidential campaign spent an unprecedented $277 mi...

8 December 2024

politics

Harris Paid $1M to Oprah's Production Company: Campaign Finance Records Reveal

$1B Loss Under Fire Vice President Kamala Harris’ 2024 campaign, which spent over $1 billion ...

8 November 2024

incidents

Mark Wahlberg’s New Restaurant Catches Fire Just Before Grand Opening Ceremony

Fire Disrupts Wahlberg's Launch Mark Wahlberg’s new Mexican restaurant, Flecha Cantina, encou...

23 September 2024

incidents

Ex-FTX Exec Caroline Ellison Seeks Leniency Before Sentencing in Fraud Case

Ellison Seeks No Prison Former FTX executive Caroline Ellison, embroiled in one of the largest fina...

<!-- advertisement 11-->
<div class="mobileShow">
<script type="text/javascript">
	atOptions = {
		'key' : '33fb986b72fdc254fb0c1e79be22e3ec',
		'format' : 'iframe',
		'height' : 250,
		'width' : 300,
		'params' : {}
	};
</script>
<script type="text/javascript" src="//www.highperformanceformat.com/33fb986b72fdc254fb0c1e79be22e3ec/invoke.js"></script>
</div>
<div class="mobileHide">
<script type="text/javascript">
	atOptions = {
		'key' : '60966449084d21264769e3d9bdff986a',
		'format' : 'iframe',
		'height' : 90,
		'width' : 728,
		'params' : {}
	};
</script>
<script type="text/javascript" src="//www.highperformanceformat.com/60966449084d21264769e3d9bdff986a/invoke.js"></script>
</div>

14 September 2026

culture

Chris Olsen Addresses Meghan Trainor Feud Rumors and Friendship Status

No Beef After All Chris Olsen has shut down speculation that his friendship with Meghan Trainor has ...

13 September 2026

culture

John Malkovich Wins Best Actor at Venice Film Festival Amid Oscar Buzz

John Malkovich Wins Venice Best Actor Award John Malkovich has claimed one of the Venice Film Festiv...

12 September 2026

culture

Sandra Bullock Reveals Why She Quit Rom-Coms After Disturbing Auditions

Bullock’s Risky Career Pivot Sandra Bullock has revealed that she deliberately stepped away fr...

11 September 2026

politics

Jimmy Kimmel Slams FCC ‘Threats’ as White House Fires Back

FCC Clash Escalates Jimmy Kimmel has taken his dispute with the Federal Communications Commission a ...

10 September 2026

culture

BBC Line of Duty star Martin Compston teases new series and says 'this is the end'

Compston Teases Final Chapter Line of Duty star Martin Compston has suggested the BBC drama is appro...

8 September 2026

culture

Game of Thrones’ Maisie Williams Addresses Arya Stark Spinoff Rumors and Possible Return

Arya Spinoff Gets Hope Maisie Williams is open to returning as Arya Stark, but only if the Game of T...

<!-- advertisement 12-->
<div class="mobileShow">
<script type="text/javascript">
	atOptions = {
		'key' : '33fb986b72fdc254fb0c1e79be22e3ec',
		'format' : 'iframe',
		'height' : 250,
		'width' : 300,
		'params' : {}
	};
</script>
<script type="text/javascript" src="//www.highperformanceformat.com/33fb986b72fdc254fb0c1e79be22e3ec/invoke.js"></script>
</div>
<div class="mobileHide">
<script type="text/javascript">
	atOptions = {
		'key' : '60966449084d21264769e3d9bdff986a',
		'format' : 'iframe',
		'height' : 90,
		'width' : 728,
		'params' : {}
	};
</script>
<script type="text/javascript" src="//www.highperformanceformat.com/60966449084d21264769e3d9bdff986a/invoke.js"></script>
</div>

Us Weekly

White House

National Football League (NFL)

Instagram

Netflix

American Broadcasting Company (ABC)

X Corp.

The National Broadcasting Company (NBC)

CBS News

TMZ

OLSEN Chris

There is currently no beef

MALKOVICH John

I am humbled to be chosen for this award, which has been given to so many wonderful actors over the past 83 iterations of the Venice Film Festival

KIMMEL James

This is yet another attack on free speech, something that has become all too familiar for us at the show, for us in the country

COMPSTON Martin

It's for Jed to say, it's not for me to say whether the show will ever end but I think it's fair to say that this is the end of the story arc that's been building since series one. Everything will come to a head on this one.

WILLIAMS Margaret

I don’t know, really. She would have to be developed in some way because I feel like I’ve changed so much

Genetic Genealogy Without Illusions: What DNA Tests Actually Show

31 August

DNA Tests That Determine Origin Have Become a Mass Pastime, but Behind Their Results Lies Something Far More Fundamental Than a List of Ethnic Percentages

11 September

III BUTLER Jimmy

American professional basketball player
NEILL Nigel

New Zealand actor
PATRICK KING Michael

American director
SUTTER Ryan

American television personality
DEUTCH Howard

American film and television director
GILFORD David

English professional golfer
WATSON Deshaun

American professional footballer
DUBROW Terry

American plastic surgeon and television personality
MOREY Daryl

American basketball executive
FURLONG Matt

Chief Executive Officer at GameStop

Sober Day 14 September

The National Day of Sobriety is celebrated every year on September 14 as part of the month-long National Sobriety Month. This day was established in 2 ...

Plug Power's Uphill Battle: Analyst Warns of Increasing Challenges

Navigating the Energy Maze

Companies4 in the news

Related news

Last news

NEW YORK NEWS

Sober Day 14 September

Companies⁴ in the news