Investing.com – The Plug Power Stock (NASDAQ:) rose 11% on Wednesday following an upgrade Morgan Stanley (NYSE:), and Green Hydrogen Deals the Company struck with Airbus and Phillips 66. (NYSE:).
Morgan Stanley analyst Stephen Byrd upgraded the stock to overweight with a revised target of $40, an upside of around 21% from the stock’s current level.
Byrd sees positive risk-reward from current levels with three catalysts driving the stock’s outperformance.
Recent announcements by the company of strategic partnerships are a highlight for analysts. The stock’s $4 billion cash and cash equivalents, which he pointed to as reasons for optimism, and the acceleration of revenue growth and potential upside for legislative support are other factors.
The analyst believes that green hydrogen is a key component in decarbonization. He also stated that Plug Power, due to its expertise, vertical integration strategy and scale, will be one of the most well-positioned companies to reap the benefits from the future demand for this fuel.
The company also announced today two additional deals to promote green hydrogen.
Airbus has agreed to decarbonize airport operations and air travel with the help of green hydrogen. Under this pact, the two companies will select a U.S. airport to serve as the first ‘hydrogen hub’ pilot airport in North America, serving as a case study for hydrogen infrastructure scale-up at other airports.
Plug Power and Airbus may also be open to joint projects in this partnership, which will further advance the development of aviation’s green hydrogen infrastructure.
The agreement with Phillips 66 will explore ways to deploy Plug Power’s technology within the former’s refineries and other operations.
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