Stock Market Today, April 29: Plug Power Jumps on Sector Strength and a Price Target Boost
Plug Power (NASDAQ:PLUG), which develops hydrogen fuel cell and electrolyzer systems, closed Wednesday at $3.41, up 12.54%. The stock moved higher after an analyst target hike and a sector-wide fuel cell rally. Investors will be watching May 11 earnings for updates on margin and cash-burn progress.
Trading volume reached 130.2 million shares, coming in about 55% above its three-month average of 84.1 million shares. Plug Power IPO’d in 1999 and has fallen 98% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) slipped 0.04% to 7,136, while the Nasdaq Composite (NASDAQINDEX:^IXIC) inched up 0.04% to 24,673. Within alternative energy, industry peers FuelCell Energy (NASDAQ:FCEL) closed at $13.64 (+37.22%) and Bloom Energy (NYSE:BE) finished at $287.97 (+27.21%) as fuel cell sentiment strengthened.
What this means for investors
The main driver for Plug Power stock’s jump today was likely the earnings report of peer fuel cell manufacturer Bloom Energy. Fast-growing data center construction projects are increasingly lining up on-site power utilizing fuel cells.
Bloom’s growing backlog doesn’t quite translate into similar growth for Plug Power, however. Plug’s fuel cells are hydrogen powered, which restricts and complicates application opportunities.
That didn’t stop Clear Street analyst Tim Moore from recommending the stock to clients yesterday, though, as he raised his price target to $3.50 per share. Investors will be watching Plug’s May 11 earnings report for signs of any green hydrogen projects boosting Plug Power’s backlog and supporting its target of break-even adjusted EBITDA by late this year.
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