Plug Power Inc. (NASDAQ:PLUG) came under pressure in Monday’s premarket session, dropping 5.1% after Susquehanna analyst Biju Perincheril lowered the firm’s price target to $2.50 from $3.50, while reiterating a Neutral stance.
The revised forecast arrives even as Plug Power recently disclosed a major step forward in the UK, where it has been tapped to supply equipment and long-term services totaling 55 MW across three green hydrogen projects being developed by Carlton Power. The agreement is still subject to final investment decisions.
Perincheril pointed to another disappointing quarter for Plug Power, noting that both revenue and earnings landed below expectations. The analyst acknowledged the company’s efforts to rein in cash usage and move toward breakeven gross margins by the end of the year, but emphasized that broader industry dynamics remain difficult.
“PLUG is making progress on shoring up its balance sheet and getting back to breakeven gross margins, but uncertainty in the hydrogen market continues to persist and weigh on long-term demand, particularly in the U.S.,” Perincheril said.
The UK projects span three sites: 30 MW for the Barrow-in-Furness Hydrogen project, 15 MW for the Trafford Green Hydrogen project, and 10 MW for the Langage Green Hydrogen Project—together representing what Plug describes as the largest combined electrolyzer order secured to date in the UK.
Looking ahead, Plug Power expects its electrolyzer segment to deliver about $200 million in revenue for fiscal 2025, supported by a solid pipeline of future opportunities. Its material handling business is projected to resume growth in 2026 as demand strengthens among major customers.
For the third quarter, Plug Power posted $177 million in revenue—well below Susquehanna’s estimate of $199 million—and reported an adjusted loss of $0.31 per share, missing expectations for a $0.12 loss.