Shares of hydrogen fuel cell company Plug-in power supply (NASDAQ: PLUG) continued to rise again today. The stock has risen by more than 25% over the past five trading days. There have been several catalysts for the recent share price rise. That includes today’s jump of 17.8% as of 11:50 a.m. ET.
Making green hydrogen
Plug Power stock had fallen since this was implied Bankruptcy was a real possibility when the company issued a going concern warning with its third-quarter report in November. But shares rebounded after Plug provided a business update last week. In that update, management announced that it has begun operating its new green hydrogen plant in Georgia. That is now the largest liquid green hydrogen plant in the US
That progress prompted Roth MKM analyst Craig Irwin to upgrade shares of Plug Power today and double that company’s price target to $9 per share. That stock price target helps explain today’s move, as it would represent a gain of more than 140% from yesterday’s closing price.
Digging out of a financial hole
Plug has been burning cash as delays have affected its hydrogen production plans, prompting it to buy hydrogen on the open market. But the new Georgia plant could help reduce costs and increase revenues.
A major US steelmaker yesterday highlighted a use case for hydrogen Cleveland Cliffs discussed the use of hydrogen in steel production. This is what Cliffs CEO Lourenco Goncalves states the company’s fourth-quarter conference call that “hydrogen is the real game-changer in iron and steelmaking.” He also noted, “The United States is closer than anyone to becoming the first country in the world with abundant and competitively priced green hydrogen…