Plug Power Inc. (PLUG): Steadily Approaching Breakeven Point

The hydrogen power-focused company is slowly approaching the breakeven point and might touch it in 2025.
While approaching breakeven, the expected growth rate is 60%.

Plug Power Inc. is a green play-focused company working on Hydrogen and Hydrogen fuel cells. Came us as a leading company in the green hydrogen economy. They develop, design, manufacture, market, install and also service a line of end-to-end hydrogen and zero-emission fuel cell solutions. They are specially customized for supply chains, logistics operations, on-road electric vehicles, and stationary power generation for businesses and industries in North America and internationally. It was founded in 1997, went public in 1999, and has headquarters in Latham, NY.

Break Even Point

In the financial year 2022, Plug registered a $460 million loss and a trailing twelve-month loss of $693 million. With its market cap of $9.018 B, the company amplified its losses by moving away from the breakeven point. Industry analysts suggested that consensus breakeven is near. Anticipation is that the company could incur a final loss in 2024. The company is projected to break even nearly 2 years from now. Assumptions are that en route to average breakeven growth could be around 60%, a buoyant growth indeed.

Plug Power Inc. (PLUG) – Price Analysis

At the time of writing, it was trading at $15.47 with a drop of 0.72%. The previous close was $15.36, while the open was $15.34. The fifty-two-week range is from $11.49 to $32.05. Meaning it is trading near the lower range of the spectrum. With a market cap of $9.018 billion, it has a volume of 10.59 billion shares, while the average volume is 18.19 million. The expected price target is $25.57 with a 65.3% upside; the highest achievable point is $46.00, while the lowest point could be $13.00.

Analysts have given a 2.65 rating for moderate buy; at the same time, short interest is bearish, with a 15.90% float sold short. Projected earnings growth is growing from $1.12 to $0.69 per share. The profit margin is negative 107.91%, and the operating margin is also negative 99.05%. Revenue stands at 642.6 million, while revenue per share is $1.11, and quarterly revenue growth is 31.10%.

PLUG – Chart Analysis

The chart shows that the price touched its 52-week low in late December 2022 and made a sharp U-turn from then on. As the low point falls in the demand zone, this situation makes it a very strong support, and unless a piece of very negative news appears, it might not go below that zone.

Although it consolidated between the zones for a while, it seems to be slowly moving to respect the upper limit of the demand zone. A slight curve is visible, which could pull it upward, and it shall consolidate for some time in an upward motion before breaking into the supply zone. However, breaking out would depend upon strong market sentiments.

Disclaimer:

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