Citi Downgrades Plug Power (PLUG) to Sell 'given limited liquidity, relatively high-cost structure, dilution from capital raises and tough competition'

Citi analyst Vikram Bagri downgraded Plug Power (NASDAQ: PLUG) from Neutral to Sell with a price target of $2.00 (from $3.25).

The analyst comments "We are downgrading PLUG to Sell/High Risk given limited liquidity, relatively high-cost structure, dilution from capital raises and tough competition, all of which should continue to weigh on the stock. PLUG reported the issuance of 77mm shares at $3.90/sh price in February (~13% of total shares). We believe this dilution will continue as the company needs more cash and as profitability remains elusive. Raising prices in an oversupplied electrolyzer market may either negatively impact sales more than anticipated and/or the increases may not materialize in the face of competition. The status of the loan from the Department of Energy (DOE) Loan Programs Office (LPO) is unclear and will not be helpful in directly supporting ongoing operations."

For an analyst ratings summary and ratings history on Plug Power click here. For more ratings news on Plug Power click here.

Shares of Plug Power closed at $3.15 yesterday.

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