What Happened?
Shares of fuel cell technology Plug Power (NASDAQ:PLUG) fell 5% in the afternoon session after Susquehanna cut its price target on the stock to $2.50.
The firm maintained a Neutral rating on the shares. The move came amid broader analyst caution, as Morgan Stanley also kept an Underweight rating on the stock despite slightly lifting its target to $1.65.
The decline was part of a wider sell-off among fuel-cell companies, including FuelCell Energy and Bloom Energy, which also saw their shares fall. The sector-wide drop appeared to be driven by profit-taking after the group experienced a significant run-up based on expectations they would benefit from the growing power demands of AI data centers.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Plug Power? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Plug Power’s shares are extremely volatile and have had 71 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 36.1% on the news that H.C. Wainwright more than doubled its price target on the company’s shares to $7 from $3 while maintaining a ‘Buy’ rating.
The analyst firm pointed to a few key factors for the optimistic outlook. It noted that significant increases in electricity prices over the previous few months and growing regulatory support for nuclear power created a more favorable environment.
These conditions, combined with strong demand for power from data centers and industrial electrification, were expected to make green hydrogen more competitive in price. This could support wider use of Plug Power’s hydrogen solutions.
Plug Power is up 1.1% since the beginning of the year, but at $2.26 per share, it is still trading 45.5% below its 52-week high of $4.14 from May 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Plug Power’s shares 5 years ago would now be looking at only $77.71.
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