Hydrogen fuel company Plug Power is set to gain ground as the U.S. transition to clean energy sources ramps up, according to Morgan Stanley. Analyst Stephen Byrd upgraded Plug Power to overweight from equal weight, saying Wednesday in a note to clients that hydrogen power was poised to be an important part of the shift to clean energy. "With the announcement of several strategic partnerships, ~$4bn of cash and cash equivalents on its balance sheet, accelerating revenue growth and the potential for significant upside from legislative support, we believe PLUG is particularly well positioned at the outset of a significant transition point in energy," the note said. Plug Power's stock rose dramatically in 2020 as clean energy plays gained favor with investors, but the stock has given back some of those gains this year. The company has an investor day event Thursday, and Morgan Stanley said there could be several key updates and announcements that may boost the stock. "Given the impact that large customer announcements can have on revenue guidance, we believe an upside range of $200-$600m to 2024 revenue guidance is not an unreasonable expectation. As a result, we are increasing our 2024 revenue by $300m to $2bn," the note said. Morgan Stanley raised its price target on Plug Power by $5 per share to $40 per share, which is 34% above where the stock closed Tuesday. Shares of Plug Power jumped 6.8% in premarket trading following the upgrade. —CNBC'S Michael Bloom contributed to the report.
Plug Power hydrogen delivery truck.
Source: Plug Power
Hydrogen fuel company Plug Power is set to gain ground as the U.S. transition to clean energy sources ramps up, according to Morgan Stanley.