Plug Power got an equal-weight rating from Morgan Stanley analysts who resumed coverage of the company on Monday.
Analyst Stephen Byrd says that the hydrogen fuel cell producer’s stock price already reflects a substantial part of the expected rapid growth ahead of the company. Byrd mentioned the company’s product advantages, strong balance sheet, and strategic partnerships as factors that position the company well for the transition to a hydrogen economy.
Byrd has a $35 price target on Plug Power shares, thereby implying multiples of 18 times 2023 enterprise value/sales and 0.6 times EV/sales growth.
"Even after modeling in double-digit revenue growth through 2050 and significant margin expansion, our discounted cash flow analysis results in a modest 8% upside from current levels," Byrd said.