Stock in hydrogen technology company
rose in premarket trading Wednesday. A couple things have investors excited. There is a third catalyst coming soon that could give shares another boost.
(ticker: PLUG) stock jumped about 7.7% in premarket trading Wednesday after rising 7.7% Tuesday.
Dow Jones Industrial Average
futures are up 0.2% and 0.1%, respectively.
Morgan Stanley analyst Stephen Byrd helped things get started Wednesday morning by upgrading shares to Buy from Hold. His price target goes to $40 from $35 a share. Byrd believes the company is well-positioned for a few reasons: the $4 billion in cash on its balance sheet; legislative support for low-carbon emission technologies such as hydrogen; and strategic partnerships, such as a recent partnership formed to make and distribute hydrogen gas in South Korea.
Plug formed another partnership Wednesday, which is likely intriguing investors. Commercial aerospace giant
(AIR.France) and Plug are working together to investigate green hydrogen for use in air transportation.
So-called green hydrogen comes from producing hydrogen gas by passing electricity generated by renewable resources through water. That way, there is no carbon dioxide—the main gas blamed for global climate change—emitted in production. Most hydrogen gas is made from natural gas these days. That process emits carbon dioxide.
see huge potential for green hydrogen to power our future zero-emission aircraft,” said Glenn Llewellyn, Airbus Vice-President, Zero Emission Aircraft, in a joint news release. Plug Power is “a true pioneer in developing green hydrogen infrastructure across the United States, and key points across Europe and Asia.”
The pair wants to have zero-carbon emission plane by 2035. That would be a plane that looks like today’s jets, but burns hydrogen instead of traditional jet fuel.
Those are Wednesday’s catalysts for Plug stock. On Thursday, the company hosts an investor event it is calling a hydrogen symposium—something else investors can look forward to. B. Riley analyst Christopher Souther, in a Tuesday research note, said Plug is likely to increase 2021 guidance and 2024 financial goals at the event.
Plug stock is still down about 12% year to date, but has seen some improvement lately. Shares are up 23% over the past month.
Plug stock had and incredible 2020, rising more than 900%. Shares are up about 73% over the past 12 months.
Write to Al Root at [email protected]