Why Reddit favorite Plug Power could be about to surge
Amid the ongoing global energy crisis, investors have been looking more closely at renewable energy companies, specifically fuel cell stocks.
One firm which could be set to benefit is the Nasdaq-listed Plug Power, which develops hydrogen fuel cell systems that replace conventional batteries in equipment and vehicles powered by electricity.
October 8 is National Hydrogen Fuel Cell Day and to celebrate we are going to be highlighting each day our favorite hydrogen moments from 2021! Make sure to follow along and let us know your favorite hydrogen moments @FCHEA_News #NationalHydrogenDay #Hydrogen— Plug Power Inc. (@PlugPowerInc) October 1, 2021
Billions of dollars are finding their way into the hydrogen economy as costs fall with governments building better infrastructure and reaffirming commitments to reducing carbon emissions.
Plug Power, based in Latham, NY, is one of the prominent companies in the hydrogen economy.
Plug Power partnering with wind developer on PPA to energize green hydrogen production: Fuel cell technology firm Plug Power and Apex Clean Energy are partnering on a 345-MW wind power purchase agreement and development of a green hydrogen facility… https://t.co/1yQobz19xl pic.twitter.com/1gXPII6qq8— Green Guru (@green81guru) July 15, 2021
The Plug Power share price surged to $73 in January having closed 2020 just above $30. However, investors decided to take their winnings after seeing astronomical gains, and the stock price came back down to earth. At the time of writing it stands at $25.57.
Similar to AMC and GameStop, Plug Power is a company on the radar of effervescent Reddit-traders. Having talked up the company earlier in the year, it appears as though bullish sentiment has returned, both on Reddit and institutionally.
“#PLUG just broke out of its descending wedge past $ 26 .... it held and targets are set ! I get chips I ask for Lays ... $31.5 , $36 . Bullish on this one folks .. XD,” said Grumpfish95 on Reddit.
Another looked ahead to two key climate conferences which could sway policy decisions in favour of hydrogen technology.
“Well, our path will be set by the PP Symposium and the COP26. I am also bullish,” said Much_Print3224.
📢 NEWS: The #COP26 Green Zone Programme is live!— COP26 (@COP26) October 1, 2021
From 1-12 November, the COP26 Green Zone will be open to the public at the Glasgow Science Centre, both in-person and online, with over 200 events.
This is YOUR chance to get involved at COP 👇#ClimateAction | @gsc1
An additional possible catalyst for Plug’s stock could be Joe Biden’s upcoming infrastructure bill. This bill would include funds for green energy, which would directly impact green hydrogen-related stocks.
House Speaker Nancy Pelosi said she intends to bring the bipartisan infrastructure bill to a vote by Monday of this week.
Institutions appear to be optimistic about the stock’s outlook, albeit not outrageously so.
Juvekar, the equity research company, rates Plug Power stock at Buy with a $35 price target.
According to TipRanks' analyst rating consensus, Plug Power is a Moderate Buy. Out of 15 analyst ratings, there are 12 Buy recommendations, two Hold recommendations, and one Sell recommendation.