Analysts Diverge On Plug Following Financial Restatement News


Following the news, Craig-Hallum analyst Eric Stine lowered the firm's price target on Plug Power to $49 from $88 as he believes the need to restate financials is "never good" and the impact to shares of high multiple stocks such as Plug can be especially severe. Nonetheless, the analyst kept a Buy rating on the shares.


More bullish on Plug Power, Cowen analyst Jeffrey Osborne told investors that he views the pullback in the shares as "a unique buying opportunity," as the root cause of the company's restatement has "nothing to do with future growth markets." He also noted the restatement has no cash impact, which he reads to mean that "this was a true error in sale-leaseback accounting reporting and not a nefarious event." He believes the restatement has to do with the complex accounting treatment of sales leaseback accounting of fuel cell units, hydrogen delivery, and related equipment largely for Walmart (WMT) and sees no attempt to "cook the books." He keeps an Outperform rating and $75 price target on Plug Power shares.

Voicing a similar opinion, Roth Capital analyst Craig Irwin argued that Plug Power's accounting restatement creates "a major buying opportunity" on what seems like an auditor's change in approach for sale-leaseback accounting. The analyst has a Buy rating and $65 price target on the shares.

B. Riley Securities analyst Christopher Souther also views the selloff in shares of Plug Power as a buying opportunity. The news does not change the historical or future growth trajectory of Plug Power, Souther contended, adding that he believes this is "another piece of accounting noise that has created an additional buying opportunity in the stock." The analyst reiterated a Buy rating on the shares with a $70 price target.


In morning trading, shares of Plug Power have dropped over 15% to $36.14.

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William K. 1 month ago Member's comment

THis situation explains the frantic advertising efforts that I have seen for Plug Power.