Plug Power:Seaport Global maintains Sell, PT down to $0.75 from $1.

Plug Power:Seaport Global maintains Sell, PT down to $0.75 from $1.

Seaport Global has maintained its 'Sell' rating on Plug Power (PLUG) but has significantly reduced its price target to $0.75 from the previous $1. This downgrade follows recent developments and the company's financial performance.

On January 27, 2025, Seaport Global analyst Tom Curran downgraded Plug Power from 'Neutral' to 'Sell' and set a new price target of $1. However, on April 9, 2025, Seaport Global further downgraded the rating to 'Sell' and reduced the price target to $0.75. This move reflects the analyst's concerns about escalating headwinds and risks to the company's top line and margin.

Plug Power reported its Q3 2024 financial results on November 12, 2024, showing a significant decline in total revenue of 34.64% year over year, from $669.18 million to $437.34 million. The company also reported a net income of -$769.28 million, an increase of 5.90% from the previous year.

The downgrade comes amidst concerns about President Trump's "Unleashing American Energy" executive order, which aimed to promote domestic energy sources. This order has raised concerns about increased competition and regulatory hurdles for Plug Power. Additionally, the company faces challenges in expanding its capacity and maintaining profitability, which could limit its growth potential.

Despite these challenges, Plug Power remains committed to its long-term growth strategy. The company has reported strong revenue growth in recent quarters and has secured several high-profile contracts, including a partnership with Walmart to deploy hydrogen fuel cell-powered lift trucks.

In conclusion, Seaport Global's latest downgrade and reduced price target reflect the analyst's concerns about Plug Power's ability to navigate escalating headwinds and maintain profitability. However, the company's commitment to its long-term growth strategy and recent strong revenue growth may provide some optimism for investors.