A day after announcing that it has reached a major agreement with Amazon.com, Inc. (NASDAQ:AMZN), Plug Power Inc (NASDAQ:PLUG) is once again in the headlines after Carter Driscoll of FBR upped his price target on the equity to $3 per share from $2.5. In particular, Driscoll believes Plug’s Amazon deal could be ‘very beneficial’ and ‘potentially a transformative one’ in the long run, whose importance ‘cannot be overstated’. Yesterday, Plug Power Inc (NASDAQ:PLUG) announced it has reached an agreement for Amazon to use Plug’s fuel cells and hydrogen technology in its fulfillment network. At certain fulfillment centers, Amazon.com, Inc. (NASDAQ:AMZN) will power its industrial equipment such as forklifts using Plug’s GenKey technology which will likely reduce costs through faster charging times.
In terms of deal impact, Plug expects sales associated with the commercial agreements to come in around $70 million in 2017. To put that in perspective, Plug reported full year-GAAP revenue of $85.9 million for full year 2016 and had only expected $130 million in GAAP revenue for full year 2017 before the Amazon news. Needless to say, FBR has an ‘Outperform’ rating.
What Does The Smart Money Sentiment Say?
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The smart money as a whole was slightly more bullish on Plug in the fourth quarter than in the third quarter. Of the 742 elite funds we track, 4 funds owned $13.18 million of Plug Power Inc (NASDAQ:PLUG) and accounted for 6.00% of the float on December 31, versus 2 funds and $721,000 respectively on September 30.
The Bottom Line
Plug Power Inc (NASDAQ:PLUG) shares are trending due to a Wall Street analyst price target hike. For more reading, check out ‘11 Best Countries in Renewable Energy‘.