FMP

FMP

Enter

Piper Sandler Maintains Underweight Rating on Plug Power Following $200M Equity Offering, Shares Down 13%

-

twitterlinkedinfacebook
blog post cover photo

Image credit: FMP

Piper Sandler analysts reaffirmed an Underweight rating and a $2.50 price target on Plug Power (NASDAQ:PLUG) after the company announced a $200 million equity offering to fund its operations, which raised questions about the choice of equity offering over the existing at-the-market (ATM) program, as well as concerns about cash burn. As a result, shares dropped more than 13% pre-market today.

Adjusting for the beginning cash from the ATM used between March 31 and May 9, the total cash burn was calculated at a minimum of $295 million, with unrestricted cash burn at least $255 million. It remains unclear how much additional cash Plug Power drew from the ATM between May 9 and June 30.

Plug Power also disclosed that it deployed over $200 million worth of products and services during the second quarter, though actual revenues are expected to be lower due to accounting rules. The company is undertaking workforce reductions and raising prices to improve margins for the second quarter of 2024. Additionally, Plug Power plans to monetize certain credits to generate liquidity.

The analysts indicated that further details on the strategic rationale behind the equity offering, as opposed to utilizing the ATM, and the potential forward margin trajectory would be sought during the upcoming earnings report.

Other Blogs

May 14, 2024 11:41 AM - Sanzhi Kobzhan

The easiest way to calculate stock’s target price and why the target price is important.

A stock's target price, also known as its fair value, is an indication of what a share can cost based on the company’s forecasted financial statements. It is important to know a stock's fair value to find undervalued stocks with great growth potential. Let's consider how investment analysts calculat...

blog post title

May 16, 2024 8:06 PM - Gordon Thompson

Deutsche Bank Upgrades AST SpaceMobile to Buy Amid Legal Challenges

On Thursday, May 16, 2024, Deutsche Bank upgraded its rating on NASDAQ:ASTS to Buy, maintaining a hold position. At the time of the announcement, ASTS was trading at $4.03. This decision was accompanied by an increase in the price target for AST SpaceMobile, raised to $22 from $19, as detailed in a ...

blog post title

May 24, 2024 9:30 AM - Rajnish Katharotiya

How to Access and Analyze Earnings Call Transcripts

Earnings call transcripts are invaluable resources for investors, analysts, and financial enthusiasts. They provide insights into a company's performance, strategy, and future outlook, making them essential for making informed investment decisions. With Financial Modeling Prep, Earnings Call Transcr...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep