Why Plug Power Stock Dropped 10% This Morning
Shares of fuel cell maker Plug Power (NASDAQ: PLUG) tumbled 10% in early trading on the Nasdaq Thursday, before recovering to a (still sizable) 7.1% loss as of 1:05 p.m. ET, after a team of analysts at Susquehanna downgraded the stock from positive to neutral.
Susquehanna also cut its price target on Plug stock in half, to just $4.50 per share.
Reports on Susquehanna's reasons for the downgrade are a little confusing. The Fly, for example, quotes Susquehanna saying renewable energy stocks are fighting "headwinds" in the residential market. But Plug Power actually doesn't do a lot of business selling fuel cells to residential customers. Its bigger businesses involve selling fuel cell powered equipment such as forklifts to industrial companies, and (more recently) producing hydrogen gas to use as a fuel source for its fuel cells.
Source Fool.com
