Plug Power Inc (PLUG)

[Jack_Bolander]

REALLY BAD NEWS !

Plug Power plunges again as market resets expectations ahead of update call

https://seekingalpha.com/news/4055757-plug-power-plunges-again-as-market-resets-expectations-ahead-of-update-call?mailingid=34032112&messageid=2900&serial=34032112.13798&utm_campaign=rta-stock-news&utm_content=link-3&utm_medium=email&utm_source=seeking_alpha&utm_term=34032112.13798

Plug Power (NASDAQ:PLUG) -12.9% in Wednesday's trading to its lowest in more than four years, as the market appears to have reset expectations ahead of the company's planned January 23 business update with CEO Andy Marsh and CFO Paul Middleton.

Plug Power (PLUG) has underperformed revenue expectations in recent years, and the $200M in revenue reported for Q3 was lower than the $260M amassed in Q2.

The stock has plunged more than 40% YTD, and Morgan Stanley analyst Andrew Percoco maintained his Underweight rating and $3 price target, anticipating downside to Plug's (PLUG) $2.1B revenue and 25% gross margin guidance for FY 2024 announced during its Q4 earnings call.

Given recent sales trends and margin track record, Percoco forecasts $1.26B of revenue and a negative 8% gross margin in 2024, compared to Wall Street consensus estimates for $1.69B in revenues and positive 4% gross margin.

The analyst thinks further delays at Plug's (PLUG) green hydrogen production facility in Georgia could be announced, which would add to pressure on the growth and profitability profile of the company's green hydrogen business model.

Percoco also pointed to an increasing probability that Plug (PLUG) will need to raise $1B-$1.5B of equity and equity-like capital to fund its highly capital intensive business to provide itself runway to improve its margin and cash flow profile, which is not fully baked into the current share price.