Down 99% from all-time highs, Plug Power (PLUG) is a hydrogen fuel cell technology company that develops and manufactures hydrogen-powered solutions across multiple sectors globally. The company’s core offerings include GenDrive fuel cell systems that power material handling vehicles, such as forklifts; GenSure stationary fuel cells for backup power in telecommunications and utilities; and ProGen fuel cell engines for various applications.

Beyond fuel cells, Plug Power provides end-to-end hydrogen infrastructure through GenFuel liquid hydrogen delivery and storage systems, electrolyzers for clean hydrogen production, and liquefaction systems. Its GenKey solution offers integrated turnkey transitions from traditional power to fuel cell systems, while GenCare provides ongoing maintenance services.

While Plug Power stock has grossly underperformed the broader markets in the last five years, its disruptive technology should keep investors with a high risk appetite interested in the company. 

Earlier this week, Plug Power announced a major expansion of its partnership with Allied Green Ammonia, securing a new 2 gigawatt electrolyzer contract for a $5.5 billion green chemical production facility in Uzbekistan. The project, backed by the Uzbekistan government, will produce sustainable aviation fuel, green urea, and green diesel using Plug’s electrolyzer technology.

This deal builds on Allied Green’s previous 3 GW electrolyzer commitment for an Australian green ammonia facility, bringing their total partnership to 5 GW across two continents. The Australian project remains on track for the final investment decision in Q4 2025. CEO Andy Marsh highlighted the deal as evidence of Plug’s leadership in the global hydrogen transition and its industrial-scale execution capabilities.

This expansion reinforces Plug’s position as a preferred electrolyzer provider for large-scale decarbonization initiatives, with technology deployed across five continents supporting industrial, transportation, energy, and chemical sector customers.

Is Plug Power Stock a Good Buy Right Now?

In the first quarter of 2025, Plug Power reported revenue of $134 million, representing an 11% year-over-year increase. At the midpoint estimate, it forecast Q2 revenue at $160 million, down from $260 million in the same period last year. 

Management’s strategic pivot toward Europe appears well-timed, with the region representing a $21 billion electrolyzer opportunity funnel through 2026. Unlike the uncertain U.S. policy environment, Europe offers enforceable procurement mandates and funded incentive schemes. Plug has positioned itself advantageously across multiple European projects, including a 300-megawatt commitment for Danish sustainable aviation fuel production and partnerships in Spain’s 12-gigawatt electrolyzer capacity initiative.

Plug Power strengthened its balance sheet with $280 million in equity financing and a $525 million structured facility, ending the first quarter with nearly $300 million in unrestricted cash. However, the DOE’s $1.66 billion loan guarantee faces uncertainty under the new administration, though management remains engaged in advancing the process.

Operationally, Plug’s hydrogen production facilities are performing well, with Georgia achieving record monthly output in April. The company’s material handling business showed renewed momentum with a $10 million order tied to $200 million in future opportunities.

Key risks include potential changes to the 45V hydrogen tax credit and tariff impacts on Chinese-sourced components, though management has implemented mitigation strategies. With Europe emerging as the primary growth driver and improving operational metrics, Plug Power appears positioned for gradual margin expansion while navigating policy headwinds in its domestic market.

Is the Clean Energy Stock Undervalued?

Analysts tracking Plug Power stock expect its sales to increase from $629 million in 2024 to $1.89 billion in 2029. While the company remains unprofitable in 2025, it is forecast to report free cash flow of $207 million in 2029. If PLUG stock is priced at 20 times forward earnings, it should be valued at a market cap of $4 billion in early 2029, indicating upside potential of over 125% from current levels. 

Alternatively, Wall Street estimates that Plug Power’s cumulative free cash outflows will surpass $1.5 billion over the next four years, suggesting that the company will need to raise additional capital. 

Out of the 23 analysts covering PLUG stock, six recommend “Strong Buy,” 13 recommend “Hold,” and four recommend “Strong Sell.” The average target price for Plug Power stock is $1.96, 44% above the current price.