2023-10-04 08:55:00 ET
In the highly competitive world of sell-side research, Wall Street analysts are usually known to cover stocks in detail in order to gain an edge. They know the good and bad about the companies in their coverage quite well. So when they set ambitious price targets, that is, price targets that translate to high upside from current stock prices, it's usually a good sign that there's plenty of potential for the underlying business to perform well over the near future. But sometimes, businesses face unanticipated changes in their operating environment that analysts either never factored in previously, nor had given due importance to in their analyses.
In such cases, price targets can remain elevated even when the underlying business has deteriorated. Here are three stocks that analysts on the Street still seem a bit too bullish about -- Plug Power (NASDAQ: PLUG) , Ginkgo Bioworks (NYSE: DNA) , and Medical Properties Trust (NYSE: MPW) -- but could be dead wrong. Despite promising projections, investors shouldn't expect great near-term returns from these stocks. Here's why.
Plug Power hasn't been a great buy this year. Shares of the company are down more than 40%. Plug Power makes hydrogen fuel cell systems, and many investors have gravitated to it as a potentially attractive renewable energy stock to own. But while hydrogen can help make for a greener world, whether it's a cost-effective solution is still debatable.
For further details see:
3 Stocks Wall Street Thinks Can Nearly Double -- and Why They Might Be Dead Wrong