Leading hydrogen fuel cell maker Plug Power (PLUG) has found itself under intense selling pressure over recent years, with its stock suffering sharp declines as ongoing losses overshadow steady top-line growth. Despite making headway in key areas like electrolyzers, where demand continues to rise, the company’s path to profitability remains uncertain. 

Moreover, Plug’s heavy reliance on external funding to support operations and expansion has only added to investor concerns. While the company is making strategic moves within the hydrogen economy, the disconnect between growth and financial stability continues to keep market sentiment on edge. But even as the company’s fundamentals paint a gloomy picture, not all Wall Street analysts are ready to give up on Plug just yet. 

Roth Capital analyst Craig Irwin, for instance, recently chopped his price target from $5 to $3.50, but kept a “Buy” rating intact, signaling that he hasn’t lost faith in the company’s long-term story. While the revised target does reflect a more cautious stance, it also signals Irwin’s belief that Plug Power could still find its footing before the year is out.

About Plug Power Stock

Founded in 1997, New York-based Plug Power (PLUG) has positioned itself as a key player in the global hydrogen economy, with a vertically integrated model that spans production, storage, delivery, and power generation. The company supplies electrolyzers, fuel cells, and hydrogen infrastructure to a range of industries, including logistics, manufacturing, and energy.

With deployments across five continents, over 70,000 fuel cell systems in operation, and 250 fueling stations, Plug has established a significant footprint. Valued at approximately $826 million by market cap, shares of this hydrogen fuel cell maker are deep in the red this year, down almost 63%, heavily underperforming the broader S&P 500 Index ($SPX).

As Plug Power remains stuck in a deep slump, the stock now trades at just 1.41 times sales, below the sector median of 1.54x and miles away from its five-year average of 44.57x. The sharp compression in its valuation signals a major shift in market perception, as investors grow increasingly wary of its ongoing losses and dependence on external funding. 

Plug Power Tanks After Q1 Earnings Release 

Plug Power unveiled its first-quarter results on May 12, offering a mixed snapshot that triggered a 10.2% selloff in the following trading session. Revenue came in at $133.7 million, marking an 11.1% year-over-year increase and slightly surpassing analyst expectations. 

The top-line growth was driven by a pickup in electrolyzer deliveries, steady demand in the material handling segment, and continued momentum in the company’s cryogenic platform. Despite top-line gains, Plug Power couldn’t escape investor backlash as losses continued to weigh on its financials. The company reported a Q1 2025 loss of $0.21 per share, narrower than the $0.46 loss a year ago, but still missing analyst expectations by a penny. 

Gross margin came in at a negative 55%, a significant improvement from the negative 132% recorded in Q1 2024.  The year-over-year gains were driven by supply chain optimization, ongoing cost-cutting measures, price adjustments, and improved scale across its hydrogen platform. Still, the persistent red ink kept investor confidence in check. 

Looking forward to Q2, management is guiding for revenue to range between $140 million and $180 million, with expectations for continued gains in gross margin and working capital performance as the year unfolds. CEO Andy Marsh emphasized the company’s forward momentum, stating, “We’re delivering real progress toward profitability and scaling our hydrogen ecosystem to meet growing global demand for clean energy.” 

Earlier this month, Plug Power also secured a loan facility of up to $525 million, aiming to bolster its green hydrogen network with added financial flexibility. While the company has made strides in expanding that network in recent years, the move has done little to lift investor sentiment, as Plug’s stock has continued its downward slide throughout the years. 

What Do Analysts Expect for Plug Power Stock?

After a rocky Q1 earnings update, Roth Capital trimmed its price target on Plug Power to $3.50 from $5.00, citing lowered revenue forecasts for 2025. Yet, despite the downgrade, analyst Craig Irwin held firm on his “Buy” rating, highlighting strong European demand for electrolyzers, improving gross margins, and success in monetizing green hydrogen tax credits in Georgia. Even with the cautious revision, the new target points to a striking 343% upside from current levels.

Overall, Wall Street is keeping its guard up, with the consensus leaning toward a cautious “Hold” as uncertainty around Plug Power’s path to profitability lingers. Of the 24 analysts offering recommendations, six are giving it a solid “Strong Buy,” 13 suggest a “Hold,” and the remaining five give a “Strong Sell.” The average analyst price target of $2 indicates 153% potential upside from the current price levels.