Truist Securities Plug Power (PLUG) at Hold, "dilution will likely drive investors to question the magnitude of PLUG's progress"

Truist Securities analyst Jordan Levy reiterated a Hold rating and $3.00 price target on Plug Power (NASDAQ: PLUG), following the company's latest equity raise.

The analyst commented: "This morning, Plug announced pricing details for a ~$200MM equity offering (~78.7MM shares @ $2.54/sh, overallotment option for an add’l ~11.8MM shares) representing a 13% discount to yesterday's close. While the company has talked extensively on reducing capex/minimizing cash burn, we think continued share dilution initially with the $1Bn ATM earlier this year and followed up by today's announcement will likely drive investors to question the magnitude of PLUG's progress/certainty around timing associated with LPO funds. The company's filing noted just $62.4MM in unrestricted cash/equivalents as of QE2Q24 (vs. $173MM as of QE1Q24). We believe this news will be unexpected for investors given the recency of the $1Bn offering + the conditional commitment from the DoE’s loan program office (LPO), and would expect shares to underperform today as a result of the announcement."

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 $2.92 yesterday.

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