On Wednesday, Plug Power Inc. (NASDAQ:PLUG) shares spiked 11% after announcing multiple strategic partnerships. The stock also received a rating upgrade from Morgan Stanley.
The firm upgraded PLUG shares to overweight from equal weight, citing accelerating growth, legislative support and attractive risk/reward profile positions after becoming a leader in the hydrogen economy.
Morgan Stanley also raised the company’s stock price target to $40 per share from $35.
Plug Power is investing heavily in the hydrogen market after partnering with Airbus in a bid to bring green hydrogen to aircraft and Airports. It also announced a partnership with Phillips 66 (NYSE:PSX) to develop low-carbon hydrogen business opportunities.
The Latham, NY-based company also said it plans to invest in Airflow, an aerospace company building a next-generation electric short takeoff and landing aircraft.
Plug Power’s exciting growth
From an investment perspective, Plug Power is yet to swing to profits amid an intensive investment phase. However, after inking deals with multiple partners, PLUG’s long-term future looks more exciting.
The company is looking to dominate the green hydrogen economy and analysts are beginning to pick the positives associated with making such commitments. It could be time to buy the stock before revenues start streaming in.
Source – TradingView
Technically, Plug Power shares appear to have recently spiked, triggering an upward breakout from the descending channel. As a result, the stock has surged to the overbought conditions of the 14-day RSI.
Therefore, with a pullback looking imminent, investors could target potential pullbacks at $28.54, or lower at $23.61. On the other hand, if the stock price continues to rise, it could find resistance at $38.04, or higher at $42.99.
PLUG is still a good long term buy
In summary, although Plug Power shares have surged to overbought conditions, the recent partnership deals create a bright future, making it perfect for growth investors.
Therefore, while the stock price may retreat in the short-term following Wednesday’s sharp spike, long-term investors could still benefit substantially if they hold their shares.
The post Should you buy Plug Power shares after receiving an upgrade from Morgan Stanley? appeared first on Invezz.
