Plug Power (PLUG) stock is soaring today after an analyst from H.C. Wainwright called Amit Dayal, raised his price target from $3, all the way to $7. Such a significant price target adjustment caught the attention of investors.

The analyst says that higher analyst prices across the U.S. can make green hydrogen increasingly price-competitive compared to traditional gray hydrogen. Plus, Plug Power recently delivered its first 10-megawatt GenEco electrolyzer array to Galp’s Sines Refinery in Portugal, marking the beginning of what will become Europe’s largest proton exchange membrane (PEM) hydrogen electrolyzer project.

The electrolyzer business has seen explosive growth, as sales have surged by 200% year-over-year in Q2 2025. The company has a global electrolyzer “opportunity funnel” valued at $2 billion.

Should you chase the rally?
The crux of the rally is that Green hydrogen is becoming more competitive due to rising electricity prices, which improves Plug’s value proposition and operations being scaled. However, I still wouldn’t chase PLUG stock just yet. The company is making progress, and rising electricity prices can make green hydrogen more feasible, but to what extent is still unclear. Plug Power is deeply unprofitable.

Free cash flow was -$1.06 billion in 2024. The cash on hand in Q2 was $141 million with $992 million of debt. Outstanding shares have doubled since Q3 2022, and the dilution and unprofitability are expected to continue.

Market sentiment alone is unlikely to counteract the dreadful fundamentals, and the $4.36 billion market cap is not enough to extend the cash runway in a significant manner, especially with all that debt. Even if electricity prices do rise, it will take years for Plug Power to become profitable, if ever.

As such, I’d stay away from the rally, as it may prove to be short-lived.

— Omor IE

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Source: Money Morning