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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.

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.

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.

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.

Why Reddit favorite Plug Power could be about to surgePhoto: Unsplash

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.

Why Reddit favorite Plug Power could be about to surgePhoto: Unsplash

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