Plug Power: Sell On Likely Loss Of Hydrogen Production Tax Credit (Downgrade)

2025-05-14 12:50:12 ET

Summary

• Plug Power Inc. reported improved Q1 2025 results due to a combination of price increases for the company's service offerings and aggressive cost reduction efforts.
• However, gross margins remained in deeply negative territory and the business continues to consume substantial amounts of cash.
• While PLUG liquidity appears to be sufficient for the remainder of the year, the low share price has impacted the company's funding options.
• Even worse, the proposed expiration of the hydrogen production tax credit by the end of this year presents an existential threat to the company.
• With the company's business plan now in jeopardy and limited funding options beyond this year, I am downgrading PLUG shares from "Hold" to "Sell."

Note:

I have covered Plug Power Inc. or “Plug Power” (NASDAQ: PLUG ) previously, so investors should view this as an update to my earlier articles on the company. ...

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