Truist Securities analyst Jordan Levy reiterated the Hold rating on Plug Power, Inc. (NASDAQ:PLUG), raising the price forecast to $4 from $3.
Despite ongoing challenges with cash burn, Plug Power shares have surged around 30% post-annual update, buoyed by optimism over a potential DoE loan facility and initial volumes from Georgia, notes the analyst.
However, Levy predicts another big cash burn period in the fourth quarter with minimal tangible evidence for a step-change improvement in the coming quarters.
In addition, the analyst sees continued margin headwinds coupled with the ATM overhang (~$300 million of $1 billion sold as of 2/23)