© Reuters. Highly-shorted Plug Power (PLUG) stock is rallying today. Here’s why
(Updated – January 31, 2024 8:27 AM EST)
Shares of Plug Power Inc. (NASDAQ:) jumped more than 8% on Wednesday as bulls work to erase the year-to-date deficit (-17.1%).
The move higher comes after ROTH MKM analysts upgraded Plug Power’s stock to Buy’ from Neutral and doubled their price target on the stock to $9 per share.
This bullish stance stems from their confidence in the successful ramp-up at the company’s Georgia hydrogen plant.
“Our visit to the Georgia green hydrogen plant gives us confidence the facility is ramping smoothly and all major technical issues are handled, addressing our prior concerns about backlog and margin visibility,” analysts said.
“Today (31- Jan) is the third day of liquefaction, and we expect the first liquid hydrogen delivery from the facility takes place imminently. Full rate 15 TPD production should be confirmed in the next few weeks.”
They commended the management for their efficiency in building the largest electrolyzer in North America in half the time it would typically take for a legacy facility.
Plug Power has also adjusted its pricing strategy for hydrogen sales to align with procurement costs, a move expected to rapidly improve margins.
Contrary to some market concerns, analysts believe there is no hydrogen shortage and notes that Plug Power possesses “good flexibility” regarding near-term funding solutions.
PLUG remains one of the most shorted stocks with a short interest of float standing at nearly 30%.
