Buy signal on Plug Power (PLUG-US)

We had an Enter Long Strategic signal on November 2, 2021, triggered by our system on Plug Power, PLUG-US, the US Renewable Tech Company.

Our system also triggered an Enter Long Tactical signal on October 11, 2021 that imply a likely bullish acceleration. Enphase has a rather solid track record, with a Behavioral score of 6/10, therefore the bullish signal is to be considered mainly Strategic.

Plug Power is a $ 22 Bn market cap provider of hydrogen fuel cell turnkey solutions. The Company is focused on proton exchange membrane (PEM), fuel cell and fuel processing technologies, fuel cell/battery hybrid technologies, and associated hydrogen and green hydrogen generation, storage, and dispensing infrastructure. It delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions for supply chain and logistics applications, on-road electric vehicles, the stationary power market, and more. In addition, the Company manufactures and sells fuel cell products to replace batteries and diesel generators in stationary backup power applications. Plug’s products and services serve the North American and European material handling markets, and primarily supports large to mid-sized fleet, multi-shift operations in high-volume manufacturing and distribution centers.

Acciona and Plug Power have launched a JV in Madrid to operate green hydrogen projects. Plug Power will benefit from this by being the primary provider of electrolyser technology, while Acciona will provide green electricity. This JV entails an initial investment of $2 billion and has the objective of capturing 20% of the hydrogen market in Spain and Portugal by 2030.

Plug Power is expected to post a $ 500 million revenue in 2021, and recently announced it expects $3 Bn sales in 2025. The company has $ 3 Bn in cash and should be profitable in 2023.

Short term catalyst : Accelerating growth, favorable political context.

This signal looks consistent with the bullish reversal in process for Renewables Techs, while Utilities Renewables are already back in major uptrend in the US.