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Plug Energy (NASDAQ:PLUG) -2.9% in Tuesday’s buying and selling as Seaport World downgraded the inventory to Impartial from Purchase with a $4.75 worth goal, saying it sees balanced risk-reward on the present valuation whereas the corporate seeks to lift wanted capital, stanch money burn and enhance margins.
Plug Energy (PLUG) is scuffling with unfavorable gross margin – down 69% in Q3 2023 – and Seaport analyst Manav Gupta mentioned he doesn’t see gross margin turning constructive in 2024, and “the one method to persuade long-term buyers that PLUG has fastened its money burn downside is to offer a concrete path to constructive gross margin.”
Plug’s (PLUG) inventory has rebounded not too long ago because the Georgia plant is now on-line, the Division of Vitality mortgage is transferring forward, and administration mentioned transferring ahead it can focus much less on high line development and extra on money administration, which Gupta mentioned is “a serious constructive.”
However Gupta mentioned he expects to remain on the sidelines till clear hydrogen adoption reaccelerates and/or Plug (PLUG) “appears on the cusp of profitability.”
Individually, Plug Energy (PLUG) mentioned it has re-started operations at its Tennessee hydrogen plant, including ~10 tons/day of liquid hydrogen provide again onto the U.S. market.
