Stars Begin to Align for Hydrogen Stock Plug Power

Shares of Plug Power rallied by nearly 13% on Wednesday to above the $30 level. The stock has been on a roll in the month of October so far, with its value having ballooned by more than 30%. Still, Plug Power’s stock is trading approximately 50% below its 2021 peak and is not out of the woods yet.

Plug Power, a hydrogen power company, has had some tailwinds that have helped to make it more attractive to investors of late, including a Wall Street upgrade and a couple of key partnerships. In addition, Plug Power is holding a green hydrogen symposium on Thursday. Analysts have been swooning about Plug Power ahead of this event.

Morgan Stanley analyst Stephen Byrd believes the hydrogen power stock has a runway for more gains. Byrd raised his rating on the stock from equal weight to overweight, saying Plug Power is out front to benefit from the shift to renewable energy sources in the U.S. The analyst is bullish on decarbonization, which is where Plug Power shines. Byrd also increased his price target on the stock by $5 to $40.

In addition, B. Riley’s Christopher Souther revealed in a note that he expects Plug Power to bolster its 2021 outlook at Thursday’s hydrogen-focused event, which could be the catalyst the stock needs. After reporting negative revenue for 2020, Plug Power’s fundamentals are in the spotlight. Souther rates Plug Power a buy with a bullish $45 price target.

Plug Power Catalysts

Strategic deals are important for Plug Power, and the company has just inked a couple more. It has teamed up with plane giant Airbus and oil refining company Phillips 66 to explore ways for airplanes and vehicles to shift to hydrogen power and lessen their carbon footprints.

Plug Power and Airbus say they are studying the feasibility of introducing “green hydrogen to future aircraft and airports worldwide.” For its part, Airbus has already set its sights on building aircrafts with no emissions in the next 14 years, and hydrogen could be its best bet. The deal with Plug Power is designed to bring Airbus closer to its goal, given the clean nature of hydropower production.

As part of their agreement, Plug Power will look into “green hydrogen infrastructure at airports.” Airbus will focus on the possibilities for “hydrogen aircraft characteristics.”

Plug Power’s deal with Phillips 66 is similarly designed to catapult hydrogen production. Phillips 66 already has hydrogen in its infrastructure and fuel mix. Plug Power specializes in “hydrogen fuel cells and electrolyzers.” The companies will look for ways to use Plug Power’s tech in Philipps 66’s business to bolster its hydrogen production.