Cowen Affirms Plug Power at 'Outperform'; GenDrive Shipment Delays Due to Slower Infrastructure Deployment

Cowen and Company affirms Plug Power (Nasdaq: PLUG) at Outperform with a price target of $3.50 following Q1 results issued Monday.

Analyst Jeffrey Osborne noted that PLUG's lighter-than-expected Q1 revenue of $9.4 million was "due to the delayed revenue recognition of 419 GenDrive units shipped in 1Q. The delay was partly caused by slower than expected infrastructure deployed at the customers' sites. This revenue is expected to be recognized in 2Q. The company maintained its FY revenue guidance of $100 mn, with ~60 percent of revenue coming in 2H15."

Osborne continued, Management, noted that large shipments were made this quarter to several large customers like WalMart and Kroger. 175 of the 419 GenDrive units shipped in the quarter went to a new customer. It was alluded to by management that this customer could be big-box retailer Home Depot. We had previously misidentified these shipments as going to Walmart's facility in Ohio. Management estimates that by the end of 2016 existing customer penetration should be around 25 percent to 30 percent, while new customer penetration will be around 6 percent to 7 percent. To that end, management announced that four additional sites were completed for WalMart in 1Q15, bring the total to ten sites. Management believes that between 14 to 16 sites, in total, will be completed by the end of the year, which is an increase from the 11 to 14 sites discussed in 4Q14.

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