Roth Capital affirms Plug Power (Nasdaq: PLUG) at Neutral following Q4 results reported late last week.

Analyst Craig Irwin commented, PLUG reported 4Q15 results modestly ahead, and mgmt. wrote down the GenCare service contracts that were previously a headwind to gross margins. Customer feedback on Plug's new air-cooled stacks is positive, and we expect experience with these units to support rising order momentum in 2016. Backlog revenue coverage is higher than in 1Q15, providing higher confidence for revenue forecasts. We look for gross margin gains that will be key to PLUG reaching its goal of breakeven exiting 2016.

We are leaving our forecasts unchanged at this time. While we maintain a cautious posture on Plug achieving its goals of achieving breakeven by the end of 2016, we see good potential for visibility to increase over the next few months supported by improved service margins and rising order momentum, the analyst noted.

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