Plug Power: Stock Price, Valuation and Everything Else You Need to Know

In the stock market, momentum and sentiment often go hand in hand. Lose the former or should the latter sour, the other will likely be affected. Which brings us to Read More... The post Plug Power: Stock Price, Valuation and Everything Else You Need to Know appeared first on TipRanks Financial Blog.

Plug Power: Stock Price, Valuation and Everything Else You Need to Know

In the stock market, momentum and sentiment often go hand in hand. Lose the former or should the latter sour, the other will likely be affected.

Which brings us to Plug Power (). The hydrogen fuel cell specialist put up a mighty display in 2020’s new energy enamored stock market, with the share gains coming free and easy. But earlier this year, the tables had turned as investors fled from growth stocks to more inflation-safe environs. What’s more, Plug Power ran into a mess of its own making. There was suddenly a lot of anxiousness around the company when an audit unearthed non-cash related errors while the company was getting its 10-K filing ready, after which it needed to refile fiscal 2018–2019 financial results along with some recent quarterly statements.

With the refiling now done, that overhang has been put to rest, and PLUG has belatedly posted its 1Q21 earnings. The results were a mixed bag, but following recent updates, investors already knew what was more or less in store. In fact, the market reacted favorably to the latest developments, which have also encouraged Evercore analyst James West.

The unveiling of General Motors as a new “pedestal/critical customer,” says West, should lead to “additional uptake throughout the automotive industry given the ringing endorsement from GM.”

What’s more, the company teased investors with the prospect of a fifth “pedestal” customer, one West thinks will be revealed later this year and will join a client list that includes not only GM, but Amazon, Walmart and Home Depot. The addition, West believes, will further “drive the stock.”

PLUG’s sales are also on the rise, although the company is still a way off being profitable. However, West is “not at all concerned with the lack of near-term profits.”

“PLUG is clearly in growth mode, the path towards achieving greater scale is more solidified, and renewable hydrogen costs continue to fall,” the analyst said. “Long-term investors should take solace with PLUG’s runway after 2024 when the company will be generating +$2B of annual revenues and is no longer investing for the long-term.”

Accordingly, West reiterated an Outperform (i.e., Buy) rating on PLUG stock backed by a $42 price target. Investors could be pocketing gains of ~24%, should the analyst’s forecast materialize. (To watch West’s track record, )

According to West’s colleagues, there’s more upside on the way. The average price target clocks in at $44.38, suggesting one-year gains of 31%. Overall, PLUG stock has a Moderate Buy consensus rating based on 9 Buys, 4 Holds and 1 Sell. (See PLUG stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Plug Power: Stock Price, Valuation and Everything Else You Need to Know appeared first on TipRanks Financial Blog.

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Lockdown or Reopening, Either Way Roku Is a Winner, Says Analyst

It’s all falling into place for Roku (ROKU). Actually, that’s not quite an appropriate description of the streaming platform’s prowess. For Roku, everything was already going swimmingly during the pandemic; Read More... The post Lockdown or Reopening, Either Way Roku Is a Winner, Says Analyst appeared first on TipRanks Financial Blog.

Lockdown or Reopening, Either Way Roku Is a Winner, Says Analyst

It’s all falling into place for Roku (). Actually, that’s not quite an appropriate description of the streaming platform’s prowess. For Roku, everything was already going swimmingly during the pandemic; the coronavirus provided a meaningful tailwind to streamers as the stay-at-home mandates resulted in elevated viewing figures and an uptick to new subscribers.

However, any worries that the numbers would drop as society returns to normal patterns are misplaced, according to Deutsche Bank analyst Jeffrey Rand. Following the analyst’s latest industry checks, Rand came away confident that streaming viewership will “hold up well in 2Q despite economies reopening.”

As has been noted many times, the pandemic has accelerated the shift from linear TV to streaming services - what is commonly known as cord cutting – a trend already prevalent before Covid hit. Along with a change in consumers’ viewing habits, advertising budgets are increasingly being siphoned away from linear TV services to streamers, a process Rand’s latest checks confirm is still at play in Q2 and which the analyst finds “unsurprising.” “With linear TV viewership continuing to decline,” the analyst added, “We see no signs of this trend reversing going forward.”

The good news for Roku is that while last year’s economic downturn resulted in the slashing of advertising budgets, these are now “starting to reach or exceed” pre-pandemic levels. What’s more, advertisers are also increasingly cottoning on to the “benefits of advertising on streaming.” Rand highlights a conversation with a contact at a consumer staples company who said the brand is “finding the ability to target certain people is far superior for streaming vs. linear TV and only advertising on linear TV no longer provides the reach needed.”

What all this also means, is that investors could be due for a pleasant surprise when the quarter’s results are in.

“With both viewership and advertising trends leaning positive as we approach the end of the quarter, we believe risks are weighted to the upside for 2Q results,” Rand summed up. “Longer-term, we remain bullish on the transition to streaming and Roku's competitive positioning in the market and believe that Roku should continue to trade at a premium valuation.”

To this end, Rand rates ROKU shares a Buy, while his $500 price target suggests ~20% upside from current levels. (To watch Rand’s track record, )

The rest of the Street agrees. Based on 14 Buys, 2 Holds and 1 Sell, the stock has a Strong Buy consensus rating. The average price target, though, is a more modest one; at $443.27, the figure implies shares will add 5% in the year ahead. (See Roku stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Lockdown or Reopening, Either Way Roku Is a Winner, Says Analyst appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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