On Friday, Roth Capital said it is more confident the fuel-cell company can meet its 2014 revenue guidance and booking target after the firm met with Plug Power CEO Andrew Marsh. Plug Power could try to roll out its products at four locations this quarter, which would position it well to ship more units than expected, according to Roth Capital.
This shipment increase will also raise the company's product gross margins, according to the firm. Finally, Roth Capital said Plug Power appears to be approaching a positive turning point with its large customers. But the firm is still concerned about the stock's valuation and therefore maintained its "neutral" rating.
Must Read: Warren Buffett's 25 Favorite StocksSTOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Last Tuesday, FBR Capital Markets initiated coverage on the fuel cell company with a "buy" rating and an $8 price target. The firm believes the company could supply components for 10% of the U.S. forklift market by 2017 and predicts revenue could surpass $200 million by that time. Plug Power's revenue totaled $25.7 million over the last year. The stock was up 6.15% to $6.04 at 10 a.m. Separately, TheStreet Ratings team rates PLUG POWER INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate PLUG POWER INC (PLUG) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electrical Equipment industry. The net income has significantly decreased by 784.5% when compared to the same quarter one year ago, falling from -$8.58 million to -$75.86 million.
- Net operating cash flow has decreased to -$8.89 million or 49.83% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, PLUG POWER INC's return on equity significantly trails that of both the industry average and the S&P 500.
- PLUG, with its decline in revenue, slightly underperformed the industry average of 5.4%. Since the same quarter one year prior, revenues fell by 13.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- PLUG POWER INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PLUG POWER INC continued to lose money by earning -$0.79 versus -$0.94 in the prior year. This year, the market expects an improvement in earnings (-$0.09 versus -$0.79).
- You can view the full analysis from the report here: PLUG Ratings Report
The firm believes the company could supply components for 10% of the U.S. forklift market by 2017 and predicts revenue could surpass $200 million by that time. Plug Power's revenue totaled $25.7 million over the last year.