Several EV and alternative fuel stocks saw massive upticks in share price over the last year, particularly around the time of the U.S. presidential election season and subsequent inauguration. One of those stocks was Plug Power Inc. (PLUG), which saw its price hit an all-time high during this period. Its price has come down significantly since, sliding slowly about 56% from its January 26 high. (See Plug Power stock charts on TipRanks).

James West of Evercore ISI most recently covered the company, optimistically stating that the “the company is well positioned for the explosive growth underway in hydrogen and the establishment of a hydrogen economy.”

The analyst maintained a Buy rating on the stock and declared a price target of $42, reflecting a possible 12-month upside of 31.87%.

West explained that he spoke in person with the CEO and CFO of Plug Power, and concluded that management was actively recruiting in order to expedite the production and implementation of the company’s new factory, discover available markets for its product, and expand its reach internationally. He noted that the company has expanded its workforce from about 600 to 2,000 over the last year and a half.

Also observed by West was the “sheer amount of equipment awaiting shipment” at the company’s headquarters, and with it the evident sense of enthusiasm among its employees.

As for cash flow, West mentioned that Plug Power expects about 75% of its produced green hydrogen to be purchased by the conclusion of 2022. Furthermore, the company has been focusing on lowering electrolyzer costs in order to compete with fossil fuels, and is making headway in signing power purchase agreements with power producers.

Additionally, West reported that Plug is currently in talks with about 100 possible customers for its distribution and data centers. This high demand came as a pleasant surprise for the analyst.

On TipRanks, PLUG has an analyst rating consensus of Moderate Buy, based on 8 Buy ratings, 5 Hold ratings, and 1 Sell rating. The average analyst Plug Power price target is $44.38, suggesting a potential 12-month upside of 39.34% from its Friday closing price of $31.85.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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