Plug Power Inc. (PLUG) shares plunged 6.25% in pre-market trading on Monday, following a downgrade by Seaport Research Partners to a "Sell" rating with a $1 price target, citing escalating headwinds for the hydrogen fuel-cell company.
In a note released on Monday, Seaport analyst Tom Curran warned that "escalating headwinds suggest the worst isn't over" for Plug Power, with risks to both its top line and margins. The analyst pointed to a flow of bearish macroeconomic news from North America and Europe, Plug Power's two most important markets.
Among the key concerns highlighted by Seaport were policy risks, including the Trump administration's call for a 90-day freeze and review of the Department of Energy's H2Hubs program, which provides funding for clean hydrogen initiatives. Curran also cited challenges in Europe, where the region is likely to miss its 2030 renewable hydrogen targets, and Germany's ruling coalition has collapsed, derailing plans to support hydrogen-ready gas-fired plants.
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