Plug Power Inc.

Plug Power Inc. (NASDAQ: PLUG) offers complete hydrogen fuel cell systems. Proton exchange membrane (PEM), fuel cell and fuel processing technologies, fuel cell/battery hybrid technologies, and associated hydrogen and green hydrogen generation, storage, and dispensing infrastructure are all areas of concentration for the company.

Key Highlights

• On April 19, 2022, Plug Power Inc. announced a deal with Walmart Inc. to provide up to 20 tons of liquid green hydrogen per day to power material handling lift trucks across Walmart distribution and fulfillment hubs in the United States.
• On June 8, 2022, Plug Power Inc. announced that it will construct a 35-tonne-per-day green hydrogen-generating facility at the Port of Antwerp-Bruges in the center of Europe.
• In the first quarter of 2021, revenue was USD72 million, compared to USD140.8 million this quarter. In the first quarter of 2022, material handling generated around USD96 million in sales, while other product offerings, such as electrolyzer solutions and recent acquisitions, generated roughly USD44.8 million.
• Fuel margins are still under pressure and were down sequentially because of higher hydrogen molecule costs coupled with higher natural gas prices.
• The average price of natural gas at Henry Hub increased by more than 13% in the fourth quarter of 2021 compared to the third quarter. Plug's average price paid per molecule was affected because of this.

Stock recommendation

PLUG's stock price has decreased by 46.50% in the past six months and is currently at the lower end of its 52-week range of USD 12.70 to USD 46.50.  As can be seen in the chart below, the price is currently below both the short-term (50-day) SMA and long-term (200-day) SMA, with RSI at 44.90, after gaining momentum from the oversold area.

Given the stock's considerable correction in the past six months, current macroeconomic scenario, financial results, and technical analysis, we propose a "Watch" rating on the stock at its current price of USD 15.92 up 11.68%, as of June 17, 2022, at 12:15 PM PDT.

One Year Technical Chart, as of June 17, 2022, at 12:15 PM PDT. Data Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary

* Current price as of June 17, 2022.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decisions should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Note 3: The report publishing date is as per the Pacific Time Zone.