What Happened?
Shares of fuel cell technology Plug Power (NASDAQ: PLUG) jumped 36.1% in the afternoon session after H.C. Wainwright more than doubled its price target on the company's shares to $7 from $3 while maintaining a 'Buy' rating.
The analyst firm pointed to a few key factors for the optimistic outlook. It noted that significant increases in electricity prices over the previous few months and growing regulatory support for nuclear power created a more favorable environment. These conditions, combined with strong demand for power from data centers and industrial electrification, were expected to make green hydrogen more competitive in price. This could support wider use of Plug Power's hydrogen solutions.
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What Is The Market Telling Us
Plug Power’s shares are extremely volatile and have had 97 moves greater than 5% over the last year. But moves this big are rare even for Plug Power and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was about 22 hours ago when the stock dropped 3.1% on the news that the stock gave back some of its recent gains following a significant rally in the previous trading session. The move came after the stock closed up more than 25% the previous day. That surge was fueled by an announcement that the company had delivered its first 10-megawatt electrolyzer to Galp's Sines refinery in Portugal. This delivery marked the first of ten modules for what is set to become one of Europe's largest green hydrogen projects. The positive operational update contributed to a more than 90% rise in the stock's value over the past month, setting the stage for the subsequent pullback.
Plug Power is up 60.5% since the beginning of the year, and at $3.74 per share, has set a new 52-week high. Investors who bought $1,000 worth of Plug Power’s shares 5 years ago would now be looking at an investment worth $237.53.
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