Plug-in power supply (NASDAQ:PLUG) is undoubtedly a volatile stock. In 2021, shares of this small energy company reached a high price of $73 per share. Today they trade for just $2.40. What has investors so upset about this small-cap stock and where do Wall Street analysts think it might be headed now?
Staking out a place in the energy future
Plug Power focuses on the development of hydrogen systems. The market potential could be huge: $1.4 trillion, according to one estimate. But the company also faces challenges. Hydrogen fuel is not yet cost-effective and competitors are emerging.
The uncertainty has led to mixed opinions among analysts. According to data from FactSet30 analysts monitor the share. Nine rate it as a “buy” or “overweight,” 17 rate it as a “hold,” and four rate it as a “sell.” Putting these together, the consensus rating for Plug Power stock is “Hold.” This is a big change from three months ago when the consensus was Buy.
When it comes to stock price targets, the highest for Plug Power is $18 and the lowest is $2. The median is $4 – still significantly higher than the current share price of $2.40.
However, before you consider the shares to be a buy, there are two things you should keep in mind. First, Plug Power’s stock price changes quickly. In the last 30 days, shares have lost almost a third of their value. Analysts’ price targets likely need time to reflect current conditions.
Second, analysts have not proven to be very reliable in predicting this volatile stock. Three months ago, when the stock’s consensus rating was “overweight,” the share price was nearly 50% higher than it is today.
There are a lot of concerns about Plug Power stock right now, and the drop in analyst expectations seems to reflect that reality. While some price targets still suggest a massive upside, be sure to dig into the numbers yourself to reach your own conclusions.
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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FactSet Research Systems. The Motley Fool has a disclosure policy.
What is the price target for Plug Power shares? was originally published by The Motley Fool