Plug Power falls 7% after JPMorgan calls the company ‘fully-valued,’ issues price target below current level

  • Date: 14-Jan-2021
  • Source: Business Insider
  • Sector:Economy
  • Country:Middle East
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Plug Power falls 7% after JPMorgan calls the company ‘fully-valued,’ issues price target below current level

Miquel Gonzalez/Shell

Plug Power fell 7% on Thursday after JPMorgan initiated the hydrogen fuel-cell manufacturer at "neutral" with a $60 price target, representing potential downside of 14% from Wednesdays close.Despite the downside price target, JPMorgan believes Plug Power is a first-mover in what represents a "massive market opportunity" that could be worth $200 billion.Plug Power is "fully-valued but a must own in the hydrogen space," JPMorgan said.Sign up here for our daily newsletter, 10 Things Before the Opening Bell. 

Plug Power fell as much as 7% on Thursday after JPMorgan said the hydrogen fuel-cell leader is "fully-valued but a must own in the hydrogen space."

JPMorgan initiated Plug Power at a "neutral" rating with a $60 price target, representing downside potential of 14% from Wednesday's close. The price target is based on a discounted 2024 market cap derived from a 60-times enterprise value-to-2025 EBITDA forecast of $534 million. 

Shares of Plug Power have been on a tear in recent months, and year-to-date Plug Power is up 105% as of Wednesday's close.

Plug Power is a first-mover in the hydrogen space, having developed proven proton exchange membrane technology that powers logistic vehicles for first-rate customers like Walmart and Amazon. The company is capitalizing on what