Update shared on23 Sep 2025
Fair value Increased 5.64%Plug Power’s consensus price target has been revised upward to $2.08, as analysts cite reduced policy uncertainty from recent legislative clarity and favorable Section 48E tax credit details, outweighing ongoing sector caution.
Analyst Commentary
- Resolution of the "One Big Beautiful Bill Act" and finality on the President's Executive Order seen as a near-term clearing event, reducing uncertainty for clean energy stocks.
- Bullish analysts highlight Section 48E policy details as a positive surprise, notably the eligibility for a full 30% investment tax credit (ITC) for qualified fuel cell projects starting construction from 2026-2032, with no zero-emission or foreign component restrictions.
- Anticipation of additional management commentary on measures like safe harboring and backlog growth following policy clarity.
- Bearish analysts maintain cautious tone, citing continued difficulty finding conviction in the renewable segment despite legislative clarity.
- Specific executive order changes targeting tax-credit eligibility and policy preferences are expected to impact other renewable names more significantly, with Plug Power seen as less adversely affected relative to peers.
What's in the News
- Plug Power secured a multi-year enhanced supply agreement with a major U.S. industrial gas partner through 2030, improving hydrogen supply reliability, reducing costs, and supporting margin expansion.
- The deal sustains Plug’s ability to meet growing customer demand across more than 275 hydrogen-consuming sites, while scaling its own U.S. hydrogen production network.
- Plug’s hydrogen plants in Georgia, Tennessee, and Louisiana total 40 tons per day, with over 40 new sites planned for launch in 2025, further expanding infrastructure.
- Plug Power dropped from several major Russell Growth and Small Cap indexes, including the Russell 2000, 2500, and 3000 Growth benchmarks.
- U.S. energy and tax policy developments are expected to provide near- and mid-term tailwinds to domestic hydrogen industry growth.
Valuation Changes
Summary of Valuation Changes for Plug Power
- The Consensus Analyst Price Target has risen from $1.97 to $2.08.
- The Discount Rate for Plug Power has fallen from 10.40% to 9.78%.
- The Future P/E for Plug Power has risen slightly from 30.06x to 30.96x.
Disclaimer
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