A deal with French automaker Groupe Renault on Tuesday brought Plug Power Inc. shares to their highest level in nearly 15 years. One analyst called the potential joint venture « transformative ». for the US company.
Plug in the power supply
Shares rose more than 14% on their way to their highest closing price since May 2006 and a six-day profit run, the longest streak since October.
The stock gained 92% over the past six months and 1,377% over the past 12 months, while the S&P 500 index gained around 16%.
It’s still a long way from a record high of $ 1,497.50 in March 2000, however.
Early Tuesday, Plug Power and Renault
said they had signed a memorandum of understanding to set up a 50:50 joint venture in France by the end of the first half of 2021.
The effort will combine Renault’s vehicle manufacturing capabilities with Plug Power’s fuel cell and hydrogen system manufacturing knowledge and enable the companies to become « key players ». In the fuel cell industry, the companies said.
« We see this as a validation of the technical capabilities of (Plug Power) in both electrolysers and fuel cells. » Jefferies analysts, led by Jeffrey Osborne, said in a note on Tuesday. They reaffirmed their valuation of the Plug Power share as the purchase equivalent and increased their price target from USD 50 to USD 73.50.
a ???? We are impressed that the company achieved this win against French providers. They said. « This joint venture gives us further confidence in our revenue expectations for Plug Power, which we expect to be between ($ 200 million) and ($ 250 million) for the mobility segment of the business in 2024. » ?
Shares in Plug Power rallied last week after the company announced a $ 1.5 billion investment from South Korean SK Group and intended to enter into a joint venture with the company in Korea by next year to found.
The Plug Power stock received another boost on Tuesday when analysts at Truist Securities began to cover the stock with a buy rating and a target price of $ 60.
Analysts praised Plug’s 973% gain Power last year, saying that while stocks are unlikely to repeat that move in 2021, we see (Plug Power) transforming the hydrogen hype. ??? in concrete orders and profitability over the next three years, which will lead to further outperformance. “
Of the 11 analysts who cover Plug Power and were surveyed by FactSet, only one rated holding, 10 the purchase with an average price target of USD 46.59.
French automaker Renault undefined announced that he has signed a Memorandum of Understanding to start a 50:50 joint venture with Plug Power undefined in France by the end of the first half of 2021, aiming for a share of over 30% of the market for fuel cell-powered light commercial vehicles in Europe. The joint venture will combine Renault’s vehicle manufacturing capabilities with Plug Power’s fuel cell and hydrogen system manufacturing knowledge, the companies said. Plug Power shares rose 14% in premarket trading, while Renault rose 1.5% in Paris.
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