Plug Power Stock Mixed: BlackRock Boosts Stake, Analysts Cautious
Plug Power's stock has seen a mixed reaction from analysts, with many remaining cautious despite a recent surge in pre-market trading. The company's electrolyzer business and increased stake from BlackRock have sparked optimism, but price targets remain below current levels.
Plug Power's stock price jumped nine percent in pre-market trading, driven by two positive developments. Firstly, BlackRock, the world's largest asset manager, increased its stake in the company to 8.3 percent, controlling 98 million shares. Secondly, the company's electrolyzer business is viewed as a promising growth opportunity, with volume in the material transport sector also expected to drive growth.
However, analysts' opinions remain divided. While TD Cowen investment bank raised its price target by 50 percent to $4.50, maintaining a 'Buy' rating, the overall consensus is more cautious. Out of 17 analyst ratings, only 5 are 'Buy', while 10 are 'Hold'. The average price target stands at $2.91, significantly below the current level of around $3.68. Furthermore, a larger group of 16 out of 22 analysts still advise selling, with an average price target of just $1.88.
Political support for the hydrogen economy in the USA continues to impact Plug Power's stock volatility. Despite recent positive news, analysts remain divided, with most price targets below the current market level. The company's electrolyzer business and BlackRock's increased stake offer optimism, but investors should consider the mixed analyst sentiment.
