Plug Power Surges on Acquisitions, Revenue Projection Raised

Plug Power says it is 'focused on becoming one of the largest green hydrogen generation companies in the United States over the next five years.'
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Plug Power  (PLUG) - Get Report turned on the power Tuesday after the hydrogen fuel cell maker increased 2024 revenue projections after announcing two acquisitions.

Shares of the Latham, New York-based company, were surging 25.2% to $6.97.

Plug Power said it acquired United Hydrogen Group of Canonsburg, Pa., and Giner ELX of Newton, Mass., prompting the company to raise 2024 revenue projections to $1.2 billion from $1 billion.

In addition, the company said it now expects to reach $210 million in operating income by 2024, up from an earlier projection of $170 million.

United Hydrogen Group operates a plant in Tennessee that can produce 6.4 tons of liquid hydrogen per day with plans to expand to 10 tons.

Giner ELX developed one of the world's largest electrolysis hydrogen generators and other technology that can be used for on-site refueling of hydrogen fuel cells. 

"Plug Power is focused on becoming one of the largest green hydrogen generation companies in the United States over the next five years and globally thereafter, and plans to continue to work with existing and new partners to accomplish this goal," the company said in a statement.

Plug Power said it expects its existing customers will use almost 100 tons of hydrogen per day by 2024 and expects over 50% of that to be green hydrogen. 

Earlier this month, B.Riley FBR analyst Christopher Souther resumed coverage of Plug Power with a buy rating and $7 price target. The company is "an early leader" in commercialization of fuel cell mobility, where Souther sees "strong momentum" building.

In addition, Barclays analyst Moses Sutton initiated the stock with an overweight rating and $7 price target, calling the company "the elder statesmen of a long-awaited, emerging U.S. hydrogen economy."

"Plug Power is one of the few viable renewable energy companies that offers an alternative to the mainstream alternatives (solar and wind)," Sutton said.