Prediction: Plug Power Stock Has 137% Upside in 2026, According to This Wall Street Analyst

Core Viewpoint - Plug Power's stock has seen a significant increase of over 250% since May, with a Wall Street analyst predicting an additional 137% upside in the next 12 months, citing an "inflection point" in its hydrogen fuel cell business [2][4]. Group 1: Analyst Insights - Eric Stine from Craig-Hallum reaffirmed a "buy" rating for Plug Power with a price target of $4 per share, one of the highest among analysts [4]. - Stine was impressed by Plug Power's recent investor meetings, noting the company's more aggressive pitch to analysts and investors, particularly in light of hydrogen's potential in the growing AI sector [5]. - Stine anticipates accelerated revenue growth for Plug Power through 2026, supported by streamlined operations and recent headcount reductions aimed at achieving positive gross margins by the end of 2025 and positive EBITDA margins by the end of 2026 [6]. Group 2: Financial Challenges - Despite the optimistic outlook, Plug Power faces significant challenges, including a net loss of $227 million last quarter, which accounted for nearly 10% of its market cap loss in just 90 days [9]. - The company has generated negative $600 million in cash flow from operations over the past year, leading to stock sales that dilute shareholder value [9]. - Concerns also arise from the technology used by Plug Power, which focuses on proton exchange membranes that may have higher material costs and lower efficiencies compared to other technologies like solid oxide electrolyzer cells [10]. Group 3: Market Sentiment - While Stine remains bullish, other analysts express bearish sentiments, predicting a potential downside of 30% to 50% for Plug Power shares over the next year [8]. - The ongoing innovation in hydrogen technologies raises questions about long-term adoption and profitability, with some analysts advocating for caution until Plug Power demonstrates increased demand at reasonable gross margins [11].