Here’s why Plug Power stock may jump to $5 soon

Plug Power, a company that was on the verge of bankruptcy, has staged a strong comeback this year and is beating the broader market. It has jumped by 51% this year and by over 330% in the last 12 months. This surge has brought its market cap to over $5.3 billion, even as the short interest has soared to 25%.Why Plug Power stock has soaredPlug Power, the biggest company in the hydrogen energy industry, was once seen as a good candidate for bankruptcy. Today, it has become a $5.3 billion, helped by the ongoing progress and signs that its turnaround efforts are improving.The core of this turnaround was Project Quantum Leap, which it launched in 2024 to improve its operations. Its goal was to reduce costs, streamline operations, and improve its execution. There are signs that these initiatives are paying off as evidenced by the recent results. The most recent results showed that its revenue grew by 22% in the first quarter to $163.5 million. This growth was mostly drive by its material handling and electrolyzer businesses. Sale of its electrolyzer improved to $79 million in the first quarter, up sharply from the $63.5 million it made in the same period last year. Its other reporting segments also continued doing well in the last quarter. For example, its fuel delivered to customers rose to over $35 million from $29 million, while the power purchase agreements rose to over $26.9 million. The services performed on fuel cell systems jumped to over $29.2 million. Its results were better than what analysts were expecting. They came a few months after the company reported another strong financial result. The numbers also showed that its gross margins increased during the quarter.Analysts are now slowly changing their estimates for the company. For example, Canaccord Genuity analysts boosted their targets, pointing to the tangible gains, including its reduction of its operational expenses. It boosted its target to $4, while Susquehanna hiked to $3.75. Most notably, analysts now expect that its business will continue to improve in the coming years. The average estimate is that its revenue will grow to $813 million this year followed by $964 million next year. Some analysts predict that it will cross the $1 billion mark this year.Still, the main risk for the shares is that some investors are still betting against the company. Its short interest has jumped to nearly 25%, with many of them warning that it is still burning millions of dollars a quarter.PLUG stock price technical analysisPLUG stock chart | Source: TradingViewThe daily chart reveals that the PLUG stock formed a double-bottom pattern at $1.70 and a neckline at $2.65. It then formed a golden cross pattern in March as the 50-day and 200-day moving averages crossed each other. Most importantly, the stock is slowly forming a cup-and-handle pattern whose upper side is at $4.58, which is about 35% above the current level. It has remained above all moving averages. Therefore, the most likely Plug Power stock forecast is bullish, with the initial target being at $4.58. A move above that level will point to more gains, potentially to the psychological point at $5. The post Here’s why Plug Power stock may jump to $5 soon appeared first on Invezz