Shares of Plug Power Inc. (PLUG) plunged on Friday, resulting in the company’s worst day in over nine years. The hydrogen fuel-cell company reported disappointing quarterly results, citing “unprecedented supply challenges.” During premarket trading, the stock experienced a significant decline of 32%, marking its largest one-day drop since March 11, 2014, when it plummeted by 41.5%.
Furthermore, Plug Power’s stock was expected to open at the lowest price witnessed during regular-session hours since May 2020. As a response to these developments, Evercore ISI analyst James West reduced his price target for the company from $37 to $25. However, the new target still suggests a substantial six-fold rally compared to the current trading level in the premarket. Despite this downgrade, West maintained his outperform rating, emphasizing his belief that the hydrogen economy is nearing reality.
West also expressed optimism about Plug Power’s Tennessee plant, which is set to resume operations in the fourth quarter of 2024. He believes that this milestone will mark a significant turning point for the company. Year-to-date, Plug Power’s stock has already declined by 52.1%, while the S&P 500 has seen a 13.2% gain during the same period.