Shares of hydrogen fuel cell company Plug Power (PLUG) are slipping on Thursday alongside a warning that it may fail to secure a vital loan. Hunterbrook Media, the sister company of hedge fund Hunterbrook Capital, claims that the Department of Energy (DOE) may not issue a loan to Plug Power due to an incomplete plan to continue operations.
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A big battle facing Plug Power concerns water as it’s having trouble sourcing enough for its hydrogen plants. That could hinder its operations, meaning it doesn’t have a clear path for paying back a loan to the DOE and hurting its chances of getting it in the first place.
What This Means for PLUG Stock
Investors aren’t happy about the possibility Plug Power won’t get the loan. That makes sense as Hunterbrook Media argues that it would be a “financial lifeline” for the company. It also claims that PLUG is “running out of cash” and could “go bankrupt within a year,” without that DOE loan.
Investors will note that Hunterbrook Capital holds short interest in Plug Power. This is something to keep in mind when considering Hunterbrook Media’s coverage of PLUG stock today.
Moving on to PLUG’s stock movement, the shares are down 2.35% as of this writing. That builds on a year-to-date fall of 52.67% and a 12-month decrease of 46.62%. This shows investors are losing confidence in the company even without considering Hunterbrook Media’s report.
Is PLUG Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Plug Power is Hold based on four Buy, 10 Hold, and four Sell ratings over the last three months. With that comes an average price target of $2.51, a high of $5, and a low of $1.40. This represents a potential upside of 17.84% for PLUG shares.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
