Plug Power cut at BTIG as ‘turning the corner but still a lot of work to do’

Plug Power (NASDAQ:PLUG) -1.1% in Thursday’s trading as BTIG Research downgrades shares to Neutral from Buy, saying the company is “turning the corner but still [has] a lot of work to do.”

Plug (PLUG) “continues to take the necessary steps to extend its liquidity runway as it waits for hydrogen order momentum to accelerate,” BTIG’s Gregory Lewis writes, but “while global hydrogen demand continues to grow, the slope of that growth continues to be lower than we expected.”

The company’s just-announced FY 2025 revenue guidance of $850M-$950M was ~20% below consensus at the midpoint, while management updated its long-range margin targets, [seeing] positive gross margins at the end of 2025 and positive EBITDA margins in H2 2026.

Lewis says Plug’s (PLUG) product offering is well positioned for the global hydrogen buildout, and his downgrade is a function of “demand pushing right,” with more product sales needed to boost margins.