Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 13 May, 26 | PLUG | Buy | USD 3.56 | USD 3.74 | USD 3.92 | Same day | Closed |
6.52%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Plug Power Inc. develops hydrogen and fuel cell product solutions in North America, Europe, Asia, and internationally. The company offers GenDrive, a hydrogen-fueled proton exchange membrane (PEM) fuel cell system that provides power to material handling electric vehicles; GenSure, a stationary fuel cell solution that offers modular PEM fuel cell power to support the backup and grid-support power requirements of the telecommunications, transportation, and utility sectors; ProGen, a fuel cell stack and engine technology used in mobility and stationary fuel cell systems, and as engines in electric delivery vans; GenFuel, a liquid hydrogen fueling delivery, generation, storage, and dispensing system; GenCare, an ongoing Internet of Things-based maintenance and on-site service program for GenDrive fuel cell systems, GenSure fuel cell systems, GenFuel hydrogen storage and dispensing products, and ProGen fuel cell engines; and GenKey, an integrated turn-key solution for transitioning to fuel cell power. It also provides electrolyzers, a hydrogen generator for clean hydrogen production; liquefaction systems that provides liquid hydrogen to customers; cryogenic equipment for the distribution of liquified hydrogen, oxygen, argon, nitrogen and other cryogenic gases, including trailers and mobile storage equipment; and liquid hydrogen, an alternative fuel to fossil-based energy. The company sells its products through a direct product sales force, original equipment manufacturers, and dealer networks. Plug Power Inc. was incorporated in 1997 and is headquartered in Latham, New York.
Improvement in Gross Margin: Negative 13.2% in Q1FY26 vs Negative 55.3% in Q1FY25
Increase in Total Revenue: USD 163.5 Mn in Q1FY26 vs USD 133.7 Mn in Q1FY25
Higher Operating Cash Outflow: USD 150.0 Mn cash used in operating activities in Q1FY26 vs USD 105.6 Mn in Q1FY25
Increase in Net Loss: USD 246.0 Mn net loss in Q1FY26 vs USD 196.9 Mn net loss in Q1FY25
Plug Power remains exposed to significant risks related to sustained operating losses, high cash burn, hydrogen infrastructure execution challenges, dependence on external financing, and slower-than-expected adoption of hydrogen technologies across end markets
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 3.56 | 3.2 | 3.74 | 3.92 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Growth Driven by Electrolyzer and Infrastructure Demand: Plug Power Inc. reported notable revenue expansion during Q1FY26, supported by increased adoption of electrolyzers and hydrogen infrastructure solutions. Total revenue increased to USD 163.5 million from USD 133.7 million in Q1FY25, reflecting stronger equipment demand and higher deployment volumes. Electrolyzer sales contributed significantly to growth, with 37 megawatt equivalent units sold during the quarter compared to only two units in the prior-year period, highlighting accelerating commercialization activity.
Improving Gross Margin Reflects Operational Efficiency: The company demonstrated meaningful progress in improving its profitability profile during Q1FY26. Gross loss narrowed substantially to USD 21.6 million from USD 73.9 million in Q1FY25, while gross margin improved to negative 13.2% from negative 55.3%. Improved stack reliability, better labor utilization, pricing optimization, and lower hydrogen procurement costs supported margin recovery across multiple business segments, particularly fuel delivery and power purchase agreement operations.
Hydrogen Infrastructure Expansion Supports Long-Term Positioning: Operationally, Plug Power continued expanding its vertically integrated hydrogen ecosystem during Q1FY26. The company increased hydrogen infrastructure deployments, recognizing revenue from three hydrogen site installations compared to one installation in Q1FY25. Management also continued advancing hydrogen production facilities and infrastructure optimization initiatives aimed at improving operational scalability, strengthening supply capabilities, and enhancing long-term competitiveness within the growing clean energy and hydrogen economy.
Service Segment Performance Shows Reliability Improvements: The company’s service operations delivered improved performance during the latest quarter, benefiting from enhanced product reliability and lower servicing costs. Revenue from services performed on fuel cell systems and related infrastructure increased to USD 22.0 million in Q1FY26 from USD 16.9 million in Q1FY25. Service gross margin also improved sharply to 34.4% compared to 14.3% in the prior-year quarter, reflecting stronger operational efficiency and reduced maintenance-related expenses.
Liquidity Position Remains a Key Strategic Focus: Plug Power continued prioritizing liquidity enhancement and balance sheet optimization during Q1FY26. The company ended the quarter with unrestricted cash and cash equivalents of USD 223.2 million and total cash, cash equivalents, and restricted cash of USD 802.0 million. Working capital stood at USD 734.1 million. Additionally, the company maintained access to a USD 1.0 billion at-the-market equity offering program to support future funding flexibility and strategic capital requirements.
Continued Losses and Cash Burn Remain Near-Term Challenges: Despite operational improvements, Plug Power continued reporting substantial losses and negative operating cash flows during Q1FY26. Net loss widened to approximately USD 246.0 million compared to USD 196.9 million in Q1FY25. Net cash used in operating activities also increased to USD 150.0 million from USD 105.6 million, reflecting continued investments, lease-related payments, and working capital pressures. The company also reported an accumulated deficit of approximately USD 8.5 billion as of March 31, 2026.
Strategic Optimization and Hydrogen Adoption Offer Long-Term Opportunity: Management continued executing infrastructure optimization and capital efficiency initiatives to strengthen near-term liquidity and improve long-term economics. Plug Power remains focused on scaling hydrogen production, expanding electrolyzer deployments, and increasing penetration across industrial mobility, stationary power, and data center applications. Growing global focus on decarbonization, clean hydrogen adoption, and supportive energy incentives could provide favorable long-term growth opportunities for the company despite current operational and financial challenges.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Plug Power Inc. (NASDAQ: PLUG) at the closing market price of USD 3.56, as on 12 May,2026
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Electrical Equipment & Parts
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| PLUG Plug Power Inc |
0.10 4.93% | 2.23 | - | - | 2.22 | 0.68 | 3.15 | -2.2314 |
| CYATY CYATY |
0.39 1.98% | 20.09 | 36.64 | 32.15 | 0.91 | 7.88 | 3.67 | 16.91 |
| ABLZF ABB Ltd |
- -% | 97.22 | 39.37 | 31.75 | 5.22 | 11.05 | 5.25 | 24.49 |
| ABBNY ABB Ltd |
1.89 1.94% | 99.07 | 38.41 | 30.96 | 5.22 | 10.79 | 5.24 | 24.44 |
| BE Bloom Energy Corp |
24.13 12.24% | 221.19 | - | 153.85 | 31.02 | 80.70 | 30.91 | 3120.72 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on May 13, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
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Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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