Roth Slashes PT on Plug Power (PLUG) to $3.75; Amid Positive Outlook, Several Areas Still Need Addressing

Roth Capital is cutting its price target on Plug Power (Nasdaq: PLUG) from $8 down to $3.75. The firm maintains its Neutral rating on PLUG.

Analyst Matt Koranda noted that PLUG's Q1 revs of $5.6 million and adjusted loss of $.06 per share compared with the firms expectations of $5.4 million and $.04 per share, respectively.

Koranda noted, While the outlook is encouraging, we await better visibility into PLUG’s H2 backlog before we develop greater conviction in our 2015 estimates. Backlog in Q1 stood at 3,063 units. With >2,800 units left to ship during 2014, we believe PLUG needs to maintain an aggressive bookings run rate to grow backlog and set itself up for strong GenDrive deliveries in 2015.

Koranda is still awaiting execution on several critical items. The analyst alluded to his last note, highlighting the following key points that would make the firm become more constructive on PLUG:

1. strong execution on shipments (>1000 units in a quarter);

2. product GM improvement;

3. re-acceleration of PLUG’s bookings run rate; and

4. material progress in commercial shipments to new markets (including transportation refrigeration units, ground support equipment, and range extenders). In our view, Q2 could provide a window into PLUG’s progress on several of these fronts. In the interim, however, we remain on the sidelines.

FY14 revenue outlook moves from $60 million up to $70 million and moves FY14 loss estimate from $.12 per share out to $.14 per share.

For an analyst ratings summary and ratings history on Plug Power click here. For more ratings news on Plug Power click here.

Plug Power closed at $3.82 yesterday.

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