$Plug: Leading the Way in Green Hydrogen Solutions and Expanding in Europe

In today's edition, we will track the fundamental readings of long-term bullish companies in strong (TigerTrade Top 1 Gainer) concepts each week and look forward to your attention and discussion.

Disclaimer: Capital at risk. This is not direct financial advice or a recommendation to acquire or dispose of any investment, but for communication only.

Stocks continued their winning streak as the Fed paused their rate hikes but kept a hawkish underlying tone.

The best-performing concepts are solid state battery, SPACs, hydrogen energy and AI concept.

Considering the different perceptions of the stock, this time TigerPicks choose $Plug Power(PLUG)$ to have a fundamental highlight to help users understand it better.

$Plug Power(PLUG)$

Plug Power provides green hydrogen solutions for various applications, such as transportation, energy storage, and fuel cells.

The company offers industry-leading electrolyzer products that can produce hydrogen from renewable energy sources, such as wind and solar. These electrolyzers play a vital role in sustainable hydrogen production, enabling the company to contribute to reducing greenhouse gas emissions.

The company also offers trailer solutions to transport hydrogen from production plants to end users worldwide.

Expansion In Europe And Industrial Partnerships

Plug Power is a leader in the global green hydrogen economy, with partnerships and customers across various sectors and regions. The company has collaborated with $Acciona S.A.(ACXIF)$, $Renault SA(RNSDF)$ and SK Group to accelerate the adoption of hydrogen in Spain, Portugal, France, and Asia. Plug Power has also served some of the largest companies in the world such as $Amazon.com(AMZN)$, $Wal-Mart(WMT)$, $Home Depot(HD)$, $FedEx(FDX)$ and $Bayerische Motoren Werke AG(BMWYY)$.

Exhibit 2: Key partnerships

Key partnerships

Plug Power's ambitious plans include the development of three green hydrogen production plants in Finland, aiming to supply the European market. These plants will utilize Plug Power's advanced technology to generate green hydrogen, contributing to the decarbonization efforts across Europe. The company aims to achieve a production capacity of 850 tons per day of green hydrogen by the end of the decade.

The selected locations in Finland strategically leverage the country's clean energy sources, with each site focusing on specific applications like local use and export, green steel production, and local mobility and pipeline injection to Western Europe. These sites play a vital role in Finland's goal of achieving carbon neutrality by 2035.

Strategic Collaborations

Plug Power has formed strategic partnerships with key players in the industry to support its green hydrogen production and storage projects. The company has joined forces with Hy2gen for the development of an ammonia plant, enabling collaboration on hydrogen derivative projects in the region. Additionally, Plug Power has partnered with GravitHy, an industrial company dedicated to decarbonizing the steel value chain, for the development of a DRI/HBI plant. These collaborations contribute to Plug Power's commitment to green steel production and the transformation of the steel industry.

Leadership in the Green Hydrogen Economy

Plug Power's investments in green hydrogen production and storage infrastructure position the company at the forefront of the industry. The projected growth of the hydrogen storage market, coupled with the increasing demand for hydrogen in various sectors, highlights the importance of effective hydrogen storage technology. Plug Power's leadership and partnerships support the adoption of renewable energy solutions and the reduction of carbon emissions on a large scale.

Further Expansion and Versatility

Plug Power's recent collaborations with Ardagh Glass Limmared AB, Hydro Havrand, and the APEX Group demonstrate the versatility and potential of green hydrogen in various industries. These collaborations aim to reduce carbon emissions in glass manufacturing, aluminum recycling, and steel manufacturing processes.

Revolutionizing the Microgrid Market

Plug Power has also formed a partnership and software collaboration with Energy Vault Holdings, Inc., aiming to revolutionize the microgrid market with a carbon-free solution. This partnership will showcase the potential of hydrogen fuel cells in providing backup power during emergencies and addressing power interruptions in vulnerable communities.

As Plug Power continues to expand its presence, collaborate with industry leaders, and revolutionize the energy landscape, it solidifies its position as a key player in the hydrogen economy.

Exhibit 3: Plug Power's position in the hydrogen economy

Plug Power's position in the hydrogen economy

Forward-Looking Statement and Outlook for 2023

The company shares some exciting plans for 2023 in its future-looking statement. Investors might want to keep an eye on the bullish-looking stock because of the latest deals and the Plug stock price surge.

In the report, Plug Power shares a detailed roadmap outlining the leading industries and strategies the company will focus on throughout the current year. One of the main projects for Plug is the development of their innovative PEM Technology Gigafactory. The team aims to expand its manufacturing processes to build 100 large electrolyzer stacks in May alone.

The growth in the backlog of electrolyzers is being fueled by Plug's success in securing significant project mandates on a global scale. The company wants to expand in this sector and solidify its position as a strong market leader.

In terms of financial goals, Plug shares some ambitious numbers for 2023. The company is looking to end the year with $1.4 billion in revenue and 10% in gross margin. From the current perspective, these goals require 600% growth in revenue and 40% growth in gross margin, which is a long road. Nevertheless, the company sees profitability potential and will continue to provide innovative solutions for businesses.

Our primary goal is to achieve revenue of $1.4 billion, and that's in 2023, which is supported by several activities, including learning the scale of 5-megawatt electrolyzer systems in partnerships with our fabricators, scaling our stationery products to facilitate 20 megawatts in shipments

Plug guidance

Other Considerations

Hydrogen energy has its limitations, and it is undeniable that Plug has a history of overpromising and underdelivering.

From a trading standpoint, PLUG is a stock with a lot of volatility, and I think it could outperform as the liquidity outlook improves, with the Fed possibly moving to rate cuts later next year., However, we have to weigh this against a possible recession which will likely hit the economy sometime next year.

Ultimately, I think we could rally a bit further in the next few months as both technicals and fundamentals look good in the medium term.

Stock Price Forecast:

Here are the target price forecast for the future 12 months from analysts on CNNMoney.com.

The 26 analysts offering 12-month price forecasts for Plug Power Inc have a median target of 15.00, with a high estimate of 78.00 and a low estimate of 7.50. The median estimate represents a +42.05% increase from the last price of 10.56.

Hope this analysis helps you get more understanding of the company's whole image, Tiger Picks will follow up the monthly performance as a longterm track.

Resource:

https://seekingalpha.com/article/4611715-plug-power-progress-unlikely-rewarded-for-while

https://seekingalpha.com/article/4607435-plug-power-big-news-sparks-huge-rally-more-to-come

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