Plug Power Actions (PLUG) – Get report It jumped on Wednesday after analysts at B. Riley and Cowen raised their price targets at the green energy company after two acquisitions it made on Tuesday.
B. Riley analyst Christopher Souther raised his price target to $ 8 a share from $ 7 while Jeff Osborne of Cowen raised his price target to $ 9 from $ 6.
Plug Power’s shares in the last check were 14% higher at $ 7.31. In trading Wednesday morning, they were up nearly 21%. The increase added to Tuesday’s 15% advance.
The updates came after Plug said it acquired United Hydrogen Group of Canonsburg, Pa., And GinerELX of Newton, Mass.
The acquisitions are in line with a vertical integration strategy that Plug Power has been pursuing, the Latham, NY company said in a statement Tuesday.
“These activities further enhance Plug Power’s position in the hydrogen industry with capabilities” to generate, liquefy and distribute hydrogen fuel, thus complementing its position in the design, construction and operation of customer-facing hydrogen fuel stations, Plug Power said.
“Improving the cost of fuel and the network is potentially a key enabler of potential expansion in commercial vehicles,” Souther said.
The Osborne update was based on Plug’s increased sales and Ebitda projections for 2024 in the acquisition announcement.
The company expects to report revenue of $ 1.2 billion in 2024, above its previous projection of $ 1 billion. PLUG expects an operating profit of $ 210 million that year, above its previous estimate of $ 170 million. And you see adjusted earnings before interest, depreciation, and tax amortization up to 25% at $ 250 million.
“Plug Power is focused on becoming one of the largest green hydrogen generating companies in the United States for the next five years and worldwide thereafter, and plans to continue working with existing and new partners to achieve this target, “the company said in Tuesday’s statement.
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