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    Why Plug Power (PLUG) Is Up 7.7% After Cost Cuts And New Green Hydrogen Deals – And What's Next

    Simply Wall St·01/04/2026 20:31:10
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    • In recent weeks, Plug Power has received an analyst upgrade tied to a US$200 million cost-savings program, while announcing new commercial wins including a 5MW GenEco electrolyzer installation at Namibia’s Hydrogen Dune site and a liquid hydrogen supply agreement with NASA’s Glenn Research Center and Neil A. Armstrong Test Facility.
    • Together with the Allied Green Ammonia contract, these moves highlight Plug Power’s push toward vertically integrated green hydrogen projects and higher-margin, longer-term partnerships that could reshape its path toward improved earnings quality.
    • We’ll now examine how Plug Power’s US$200 million cost-savings initiative and new green hydrogen deployments influence the company’s investment narrative.

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    Plug Power Investment Narrative Recap

    To own Plug Power, you have to believe that green hydrogen can eventually support a profitable, vertically integrated business, despite the company’s long history of losses and ongoing cash burn. The US$200 million cost-savings initiative and higher pricing are now central near term catalysts, while liquidity and dilution risk from funding needs and convertible debt remain the biggest near term concern. The recent analyst upgrade does not remove this risk, but it does focus attention on execution against those savings targets.

    Among the new announcements, the 5MW GenEco electrolyzer deployment at Namibia’s Hydrogen Dune site is most relevant, because it shows Plug Power actually delivering a fully integrated green hydrogen project rather than just adding to its pipeline. Alongside the NASA liquid hydrogen supply deal, it underpins the idea that higher margin, longer duration contracts could eventually support better earnings quality, but it does not yet resolve the company’s persistent margin and liquidity challenges.

    Yet investors should still be aware of how Plug Power’s reliance on fresh capital and potential dilution could...

    Read the full narrative on Plug Power (it's free!)

    Plug Power's narrative projects $1.2 billion revenue and $124.7 million earnings by 2028. This requires 22.2% yearly revenue growth and about a $2.1 billion earnings increase from -$2.0 billion today.

    Uncover how Plug Power's forecasts yield a $2.79 fair value, a 25% upside to its current price.

    Exploring Other Perspectives

    PLUG 1-Year Stock Price Chart
    PLUG 1-Year Stock Price Chart

    Twenty two Simply Wall St Community fair value estimates for Plug Power span roughly US$1.49 to US$6.96 per share, reflecting very different expectations. Against this wide range, the central question is whether Plug Power’s US$200 million cost savings push can meaningfully address its history of heavy losses and cash burn, which has broader implications for future funding needs and shareholder dilution.

    Explore 22 other fair value estimates on Plug Power - why the stock might be worth 33% less than the current price!

    Build Your Own Plug Power Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.