Interestingly, Plug Power (NASDAQ:PLUG) is generally favored by Wall Street’s experts even while PLUG stock can’t seem to get off the ground. Are investors missing out on a great opportunity? I’d say so, as Plug Power’s gigantic green hydrogen production facility could prove to be a major revenue generator.
To be honest, it requires faith and vision to confidently invest in Plug Power. As we’ll discover, the company doesn’t check all of the boxes for folks who insist on picture-perfect financials.
Really, Plug Power’s loyal shareholders are willing to accept imperfections today, in anticipation of potential returns down the road. Therefore, don’t over-focus on Plug Power’s progress in 2023. Instead, consider how much shareholder value the company could provide through 2030.
PLUG Stock Investors Will Have to Forgive Poor Financials
PLUG stock peaked at around $30 last year and, prior to that, traded above $60 per share. I’ll be the first to admit that $60 was too high, too soon. Still, the current Plug Power share price of around $10 seems too cheap, so there’s an opportunity here.
Even though many financial traders gave up on Plug Power, reported that some big-money investors are staying in the trade. Indeed, Plug Power’s well-heeled investors include famous names like Vanguard and BlackRock (NYSE:BLK).
Furthermore, Wall Street’s experts generally favor Plug Power. Out of 21 analysts, 16 gave Plug Power a “buy” rating and no “sell” ratings were observed. Plus, the average price target for PLUG stock is $25.50, which indicates strong upside potential.
On the other hand, Plug Power has a track record of quarterly EPS misses. It’s also problematic that Plug Power’s cash and cash equivalents dwindled from $2.48 billion at the end of 2021 to $690.63 million at the end of 2022. In addition, Plug Power reported a widening net earnings loss during that time frame.
Gigafactory Is the Key to Plug Power’s Future Growth
Now, it’s time to ask yourself a tough question: Are you willing to overlook Plug Power’s current financial issues? If so, then I invite you to consider the piece of the puzzle that will drive Plug Power’s growth through 2030.
I’m referring to Plug Power’s gigafactory, where on-site green hydrogen production takes place on a massive scale. This gigafactory features over 2 gigawatts of electrolyzers, 60,000 fuel cell stacks and 2.5 gigawatts of output capacity.
Plug Power’s gigafactory is located in Rochester, New York, and it reportedly produced 122 megawatts of “electrolyzer stacks for customers and Plug’s green hydrogen plants.” Moreover, prepare for a major scale-up as Plug Power is “on track” to ramp the gigafactory’s capacity up to 100 megawatts per month in the middle of the current quarter, “with plans to further increase output” during the third quarter of this year.
So, Here’s My PLUG Stock Price Prediction for 2030
Plug Power’s gigafactory should keep any competitors in the green hydrogen production business at bay. Hopefully, the company’s scaled-up production capacity will help Plug Power improve its financials.
Again, it requires a great deal of forward-thinking vision to invest confidently in Plug Power. If you’re on board with the company’s ambitious plans to maintain a leadership position in the hydrogen economy, consider a small stake in PLUG stock today. I expect the stock to reach $30 by 2030. This is a realistic target price, I believe, that would still represent substantial returns from the current Plug Power share price.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.