J.P. Morgan analyst Bill Peterson reiterated a Neutral rating on Plug Power, Inc. (NASDAQ:PLUG).

On Tuesday, the company reported revenue of $191.5 million, missing analyst estimates of $263.2 million, and customer warrant charges that stood at $22.7 million, based on updated forecasts and the timing of customer programs.

The analyst writes that Plug Power could witness moderate growth in 2025 with an increase in material handling demand (+10% to 20% Y/Y) and electrolyzer deployments from its existing backlog (+60% Y/Y).

Also, margin improvements should stay consistent, supported by the company’s cost-cutting initiatives, higher equipment volumes, and additional hydrogen fuel capacity from Louisiana, per the analyst.

Peterson says that Plug remains cautiously optimistic about securing the DOE loan, with Texas construction now likely delayed to fourth-quarter as they await an extra ~$200 million in financing.

Meanwhile, investors will likely appreciate the renewed focus on core competencies, expecting solid execution and balance sheet improvement in the coming quarters, adds Peterson.

Overall, the analyst writes that Plug Power can overcome its current cash flow challenges while the operating and capital markets environments remain tough.

As a result, he expects PLUG shares to remain range-bound over the next few quarters until there’s more clarity on its balance sheet and margin expansion.

Investors can gain exposure to the stock via Global X Hydrogen ETF (NASDAQ:HYDR) and ETF Series Solutions Defiance Next Gen H2 ETF (NYSE:HDRO).

Price Action: PLUG shares are down 3.70% at $1.56 at the last check Wednesday.

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