- NASDAQ:PLUG closed the day unchanged amidst another day of market sell offs.
- The Wall Street Journal released an article questioning the true value of some stocks in the green energy sector.
- A prominent bank initiates a bullish price target on Plug stock.
NASDAQ:PLUG has been spilling downwards in 2021 as sectors that witnessed unprecedented growth in 2020, have given back all those gains and then some over the last month. On Tuesday, Plug Power traded flat during trading hours and closed the day at $25.25 on higher than average trading volume. Shares are now down over 65% since hitting all-time highs in January, as renewable energy plays continue to get hammered despite commitment from the Biden administration towards upgrading infrastructure in America.
The Wall Street Journal kicked the week off on Monday with a scathing report on a possible reason as to why clean energy stocks like Plug ran up as high as they did. The financial publication pointed to an influx of clean energy index funds and ETFs that were attempting to capitalize on the frothy investor sentiment. The reason for these stocks suddenly surging? Many of these funds had extremely concentrated holdings so as more investors bought in, these notable few companies like Plug saw its stock price soar. The article hinted that the prices were artificially inflated by supply and demand inefficiencies, which is one of the main reasons this industry has been unplugged, so to speak.
Plug Price prediction
On the bright side, Morgan Stanley announced it was resuming coverage of Plug Power and initiated a price target of $35, which represents a near 40% upside from Tuesday’s closing price. Many investors are wondering when the end of the current sell off will come, but the Morgan Stanley position may be a hint that Plug has now been oversold.