Why Plug Power Stock Sank This Week
After a brutal November, shares of Plug Power (NASDAQ: PLUG) headed even lower this week and were trading down 11.5% lower through 2 p.m. ET Friday, according to data provided by S&P Global Market Intelligence. Several analysts have turned cautious about the hydrogen stock's prospects in recent weeks, with yet another joining the league two days ago.
Arthur Sitbon from Morgan Stanley downgraded Plug Power's rating this week and cut his price target on the stock from $3.50 apiece to $3 a share. The stock was changing hands for about $4 apiece as of this writing. The analyst is worried about Plug Power's operational performance and liquidity amid deteriorating hydrogen economics.
Plug Power stock plummeted last month when it reported only 5% year-over-year growth in revenue and a negative gross margin of 69% for its third quarter. The company blamed supply constraints, driven primarily by multiple force majeure events in the liquid hydrogen market in North America. Plug Power also admitted it will need more cash to fund operations and is, therefore, pursuing several options to raise money, including debt.
Source Fool.com
