RBC Capital Markets downgraded PLUG to “sector perform”
Shares of Plug Power Inc (NASDAQ:PLUG) are 35% lower before the open, after RBC Capital Markets and J.P. Morgan Securities hit the hydrogen fuel cell firm with substantial post-earnings bear notes.
Digging deeper, Plug Power reported a larger-than-expected loss for the third quarter after last night’s close that accompanied a revenue miss. In response, RBC downgraded PLUG to “sector perform,” citing a series of “unprecedented challenges that hindered hydrogen supply during the quarter.” Plus, J.P. Morgan Securities cut its rating to “neutral.”
In addition, the security attracted no fewer than nine price-target cuts. There’s still a lot of optimism to unwind, too, as 12 of 20 covering brokerages rated Plug Power stock a “buy” or better coming into today. What’s more, the 12-month average target price of $13.53 is a more than 200% premium to last night’s close.
On the charts, PLUG is poised to open below the $5 level for the first time since mid-2020. Should these premarket losses hold, it will mark the equity’s worst single-day percentage loss in roughly nine years. Pacing for its third weekly loss in four, Plug Power stock is 59% lower over the last 12 months.