Plug Power Inc. stock may have been trading fairly low last week, but the company’s subsequent 13-percent rally has experts predicting future smooth sailing. As an up and coming player in the alternative energy market—its recently-released ProGen fuel cell engines have the potential to revolutionize the electric delivery vehicle market—Power Plug could become the next big name in renewables, getting the world moving toward cleaner and still profitable energy sources.
A variety of analysts are keeping a close eye on Plug Power these days, including Thomas Weisel Partners (founder Thom Weisel) and FBR Capital (founders Emanuel J. Friedman, Eric F. Billings, and W. Russell Ramsey). They forecast a $2.26 price per share target for the stock, which has already risen 42.17 percent from previous lows. In addition, Plug Power current merits a Buy rating from Rodman & Renshaw.
Plug Power Chief Executive Andy Marsh is scheduled to announce Q4 fiscal earnings on Thursday, March 16. He will also discuss where the company is going in 2017—likely continuing in the direction of leadership in next-gen hydrogen and fuel cell solutions.
“The Plug Power team is making substantial contributions, every day, not just with leadership in fuel cell power for industrial electric vehicles, but also with hydrogen fueling station and service solutions, which are accelerating mass adoption,” Marsh said.
One of the keys to Plug Power’s success, Marsh continued, is the rise of electric power in China. The country is slated to invest $100 billion in fuel cell energy through 2030, according to research Marsh did during his frequent trips to China during 2016. On behalf of Power Plug, Marsh has already signed numerous deals with major Chinese auto companies and government organizations.
Though material handling still constitutes about 80 percent of the company’s work, Marsh is keen to diversify its offerings. Earlier this month, Plug Power took another step in that direction, releasing its first run of ProGen fuel cell engines for use in electric delivery vehicles. Plug Power hopes these new engines will not only benefit the company, but allow electric vehicles to become “a viable solution for a wide range of applications, including parcel delivery and service trucks, municipal and government fleets, taxis and port vehicles.”
ProGen engines are getting their start in the Los Angeles area’s FedEx fleets, with plans to release them to China in the second quarter of the year.
So where will this lead Plug Power’s market value? Assuming the desire for electric delivery vehicles continues to rise either here in the U.S. or in China, Plug Power’s stock is likely to do the same.
