what happened
Shares of Hydrogen Fuel Cell Pioneer Plug power (NASDAQ: PLUG) rises today, by 28.2% from 10:00 EST, after the company announced a new alliance with South Korean industrial giant SK Group last night.
In a $ 1.5 billion deal, Plug Power plans to sell a 10% stake in itself to SK Group, with the valuation of new shares issued at $ 29.29 each, but investors who already own Plug , performs much better than that. Their shares are now worth $ 45.50 apiece in the morning trade.
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Approximately
Why are Plug Power investors so excited? As the company explained in the announcement last night, the commitment with SK Global increases its access to the “Hydrogen Economy Roadmap by 2040” plan in South Korea, which proposes that 6 million hydrogen fuel cell engines will be upgraded over the next 20 years. South Korean roads are being laid, with the construction of 1,200 refills. stations to replenish them, and the production of 5 million tons of hydrogen fuel per year. As a fuel cell maker and hydrogen maker, Plug Power is able to take advantage of at least two of the legs of these hydrogen three – and probably all three.
Now what
Wall Street professionals cheer on the news. As TheFly.com reports, at least three separate analysts have already raised their price targets on Plug Power shares, with Cowen & Co. its valuation at $ 50 per share over 12 months, B. Riley Securities says $ 52, and HC Wainwright goes as high as $ 60.
Plug Power, which previously promised investors that it would earn $ 1.2 billion in annual ‘gross billing’ and earn $ 200 million a year by 2024, says B. Riley Securities. HC Wainwright now plans to have $ 12.9 billion in annual revenue and $ 3.9 billion in annual operating profit by 2030 – two times his previous estimates.