Plug Power stock could jump by 35% soon: here’s why

Plug Power stock price has held steady in the past few weeks as investors reacted to the recent financial results, which showed that its business was doing well. PLUG, a top player in the hydrogen energy industry, was trading at $2.30 on Wednesday, up by 35% from its lowest level this year. 

This recovery may continue in the foreseeable future as investors anticipate more revenue growth this year.

Analysts expect Plug Power revenue to keep growing

Plug Power’s business is doing well despite the ongoing challenges in the hydrogen sector. The most recent results showed that its revenue jumped by nearly 13% last year to $710 million. Its fourth-quarter revenue rose by 17.6% to $225 million.

This growth was driven by a big increase in the power purchase agreements segment, which continued seeing more demand in the United States and other countries. Its power purchase agreements made $107 million from the $77 million it made in the same period a year earlier.

The other segments of this business continued doing relatively well in this period. For example, fuel delivered to customers rose to $133 million from the previous $97.8 million. Also, the services offered on fuel cell system made over $94 million, up from $52 million in the same period in 2024.

The main challenge, however, is that its biggest equipment sales have continued weakening. Its revenue dropped to $371 million from the $390 million a year earlier. This is important as the segment made $711 million in 2023.

Wall Street analysts are highly optimistic that the company’s business will continue rising in the coming years, helped by the rising industrial demand, including companies like Walmart, Amazon, and DHL.

The average estimate is that its revenue will jump by 6.20% this year to over $142 million, while its annual figure will jump by 13% to over $802 million. It will then make $951 million this year.

Additionally, Plug Power’s losses are expected to continue narrowing. It made a loss per share of 85 cents last year, and analysts expect it to improve to 30 cents this year and 22 cents next year. 

Still, despite these developments, the stock faces the major risk of dilution as it will need to raise capital in the coming months. It ended the last quarter with over $308 million in cash and $186 million in restricted cash.

Plug Power stock price technical analysis 

PLUG stock chart | Source: TradingView 

The daily timeframe chart shows that the PLUG stock has rebounded in the past few days, moving from a low of $1.72 in February to the current $2.32. It has formed a double-bottom pattern at $1.72 and a neckline at $2.64, its highest level in January this year.

The stock remains between the 50% and 61.8% Fibonacci Retracement levels. It has also moved above the 50-day Exponential Moving Average (EMA).

Therefore, the stock will likely continue rising in the coming weeks, potentially to the neckline at $2.65. A move above that level will point to more gains, potentially to the psychological level at $3.10, which is about 35% above the current level.