Plug Power Inc. (NASDAQ: PLUG), a maker of fuel cells, has had its stock rise 11% in the last week. The reason for this was an uptick in green energy possibilities against the backdrop of predicted increases in oil and gas prices.
On the increased interest in hydrogen as a fossil fuel alternative, Morgan Stanley investment bank analyst Stephen Byrd expects PLUG’s stock price will quadruple. Plug Power is in the process of constructing a huge hydrogen manufacturing facility.
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In addition to offering hydrogen fuel cells for the generation of power, Morgan Stanley issued an “above market” recommendation in light of this, albeit they cut their target price to $60. Despite the price drop, the suggestion is favorable, implying a big gain in quotes.
Plug Power is currently constructing a megawatt-class hydrogen power facility that can meet worldwide demand. China, in particular, said this week that by 2025, it plans to raise green hydrogen production to 200,000 tonnes and the number of hydrogen fuel cell automobiles to 50,000. Despite the challenges of storage and manufacturing, hydrogen offers two distinct benefits that are impossible to match.
The first is 100% environmental friendliness (when hydrogen is consumed, clean water is produced) and renewability (new hydrogen can be created from water by electrolysis using solar or other clean energy). The ability to develop massive (hundreds of kW) round-the-clock power plants capable of powering heavy land and sea vehicles, big buildings, and other applications is the second benefit.
Plug Power is a pioneer in hydrogen energy, hence news concerning the field is predominantly reflected in the stock price of PLUG.
The company has a -0.81 earnings-per-share ratio. The stock of PLUG has risen 6.88 percent in the last five sessions and has moved 27.80 percent in the last month, but has lost -0.99 percent year-to-date.
