Roth Capital Trims PT on Plug Power (PLUG) to $1.75 Following Q2 Report

August 15, 2016 7:46 AM EDT
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Price: $1.62 +4.52%

Rating Summary:
    4 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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Roth Capital trims its price target on Neutral-rated Plug Power (Nasdaq: PLUG) from $2 down to $1.75.

Analyst Craig Irwin commented, Updating estimates for 2Q16 results and Plug's adoption of PPA accounting. While GenDrive margins are impressive, and have room to increase further, the implied margins for Plug's infrastructure business remain tepid, and we see necessary improvement here as a key factor for Plug to meet 2016 GAAP gross margin guidance. Nearly half of Plug's 11,000 fielded units have been booked as revenue under lease or PPA accounting, so visibility on profits here could present a material catalyst for the stock.

We are adjusting our model for 2Q16 results, and incorporating the impact of PPA's in our GAAP forecast. Both gross margin and cash flow guide [of ($20m) cash for operations] point to 2H16 earnings above estimates, but we remain conservative given limited visibility.

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