4 Reasons To Like Plug Power, According To Oppenheimer

Plug Power Inc (NASDAQ: PLUG) is an industry leader in fuel cell technology for motive applications, according to Oppenheimer.

The Analyst

Oppenheimer's Colin Rusch initiated coverage of Plug Power with an Outperform rating and $2.50 price target.

The Thesis

The bullish case for Plug Power is based on four factors, Rusch said in a note.

1. The company boasts a leadership status in product deployments and accounted for the majority of 2017 global transport fuel cell shipments.
2. The end-user of fuel cell-based forklifts have compelling economics compared to standard forklift technology given the higher utilization rates, the analyst said. The market should appreciate Plug Power's products, which has a higher up-front expense but the benefits over time more than offset the price tag.
3. Plug Power has spent multiple decades configuring its platform, but today it's positioned as a growth story with a highly leverageable operating structure and the potential for 15 percent to 35 percent top-line growth and 30 percent incremental margins.
4. China's New Energy Vehicle policy should benefit Plug Power as the company is moving towards a fuel cell adoption at a faster pace than other countries. In fact, China's policy is targeting 50,000 zero emissions fuel cell cars by 2025 and one million by 2030.

Price Action

Shares of Plug Power were trading higher by more than 4 percent Thursday at $2.04.

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