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Research Alert: CFRA Maintains Hold Opinion On Shares Of Plug Power

05/11/2021 11:31

03:30 PM EDT, 05/11/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

PLUG provided a business update after market close on May 10. Within the update, PLUG highlighted its expectations for Q1 2021 sales at $67 million and guided Q2 sales at $102 million, in-line with consensus estimates. PLUG also reiterated its billings targets for 2021, 2022, and 2024. However, we note that the release did not include any information on profitability. Regarding the restatement, PLUG notes that the updated 10-K is expected to be filed "within the next five days". Overall, the update read optimistically and was well received by the market as PLUG shares climb roughly 16% at the time of this note. However, while bulls may think its time to put this year's sell off in the rear-view mirror, we recommend staying cautious, as risks pertaining to execution, profitability, and governance are still relevant, in our view. As a result, we lower our 12-month target price $9 to $27, based on an enterprise multiple of 50x our 2024 EBITDA estimate and a discount rate of 10%.