Plug Power Inc (NASDAQ: PLUG)
Plug Power had an incredible day in the market yesterday after a top Wall Street analyst mentioned the stock in a Tweet promoting an article that he will be publishing on Seeking Alpha. In pre-market this morning, it seems as though gains will continue. Today, we’ll take a look at the tweet, discuss what it is about the hydrogen fuel cell maker that likely has the analyst so excited, and talk about what we can expect to see from PLUG moving forward. So, let’s get right to it…
Top Wall Street Analyst Has A Positive Opinion Of PLUG
Yesterday, Matt Margolis, Chief Research Analyst at Wall Street Forensic looked to Twitter as a way to get his thoughts about PLUG out. Here’s what he had to say:
“I’ll be putting out my thoughts later this week on $PLUG via SA detailing why the company is my #1 rated forensic pick… Stay tuned”
In the tweet, Margolis didn’t offer much by way of details with regard to why he’s so excited about PLUG, other than the fact that he would be publishing a post about it later on. Nonetheless, I’ve done some digging and the article is now live. Here are the hit points Margolic believes will drive PLUG upward…
PLUG Is Set To Start Shipping New GenDrives
The first thing Margolis talked about in his post was Plug Power’s GenDrives. These new GenDrives feature low power stacks and are set to start shipping in the fourth quarter. The new product features longer life cycles that are likely to improve gross margins. Ultimately, with regard to GenDrives, Margolis concluded that the new product is likely to have a “meaningful impact on service margins in 2016 and beyond.”
Less Reliable Models Being Phased Out
In his post, Margolis also explained that many of the products being used by consumers are older models. He expects for the older models to start being phased out and newer models brought in, which will of course lead to higher sales and higher revenues for PLUG.
While PLUG hasn’t quite reached a point of profitability yet, Margolis expects for this to change relatively soon as well. In his post, he explained that the company has made necessary changes and is likely to reach profitability in 2016.
The Bottom Line
The bottom line here is that Margolis, a well-respected analyst on Wall Street, clearly likes what he sees from PLUG. I’ve also been following the company for quite some time now and I can’t see anything in his post that is misleading by any means. At the end of the day, PLUG is making the right decisions and is likely to grow moving forward. To read the full post on Seeking Alpha, click here.
What Do You Think?
Where do you think PLUG is headed and why? Let us know your opinion in the comments below!