Shares of Plug Power (NASDAQ: PLUG), which had fallen more than 3% in trading earlier in the day, struggled higher but still closed down 1.9% on Friday. A positive analyst note from Citigroup helped the stock recover some of its losses — but not all of them.
It’s not immediately clear why Plug stock was under pressure today. There wasn’t any obvious bad news depressing the stock — no negative earnings reports, and no negative notes from Wall Street analysts. Actually, the opposite was true.
In a report out today, StreetInsider.com described how investment bank Citigroup initiated coverage of the renewable energy stock with a buy rating and a $35 price target — about 30% higher than where Plug closed the day. Plug’s “unique vertical integration strategy from making electrolyzers to hydrogen production, delivery and building fuel cell (FC) modules for mobility and data centers” puts it “at the center of the hydrogen economy,” said Citi.
Furthermore, even management’s ambitious target of selling 25,000 units a year by 2024 would represent only 1% of the total market, leaving lots of room for further growth. And that’s before Plug even expands into making fuel cells for “light delivery trucks, buses and heavy duty long haul trucks.”