Plug Power is a US company focused on manufacturing fuel cells. As of a few days ago, the new price target is a whopping $53. So it’s high time to take a look at this stock.
Fuel cells: Crucial to the energy transition
Fuel cells are a technology that has been known and proven for decades. With their help, combustible gases can mainly be oxidized without open combustion to generate electrical energy. Even if there are still some politicians who regard this technology as “uncharted territory,” this is by no means the case. Already the space programs of the USA and the former USSR use fuel cells in spaceships and stations. If these “reactors” are fed with “green” hydrogen, the entire process of generating electricity is completely CO2-neutral. In the current times of the energy turnaround, which is all about CO2 avoidance, this is of course worth its weight in gold. Another advantage of the fuel cell is its compactness. It can be used stationary, but also in vehicles. It is particularly useful in heavy vehicles such as trucks or buses. Because a lot of weight would mean a lot of accumulators in a vehicle powered purely by accumulators. And that in turn increases the weight. Ships, aircraft, large agricultural and construction machinery are also affected by this problem.
Gigantic market for companies like Plug Power
This results in a gigantic market worldwide for fuel cell manufacturers. Plug Power has gigantic expertise in this area, making it already one of my favorites in this industry.
New US legislation brings the “booster
The Biden administration has introduced legislation that, among other things, promotes fuel cells. This should now clear the way to new heights for Plug Power’s stock. The price target for the value has now been massively raised to USD 53. That’s a whopping +38% from the current price level!