Clear Street Upgrades Plug Power to Buy on Improved Risk-Reward

Core Viewpoint - Clear Street upgraded Plug Power from Hold to Buy, lowering its price target to $3.00 from $3.50 due to dilution from recent financing [1] Group 1: Price Target and Valuation - The price target reduction accounts for dilution from a convertible refinancing completed in late November and a lower valuation multiple applied to the 2027 sales forecast [2] - The new $3.00 target is based on a 4x EV-to-sales multiple applied to an estimated $1.07 billion in 2027 revenue, which represents a modest premium to the company's three-year historical average valuation [2] Group 2: Justification for Premium - The premium valuation is justified by anticipated cost savings in 2025, a lower annual cash burn rate, and improving opportunities for electrolyzer deployments at European refineries [3]