Plug Power (PLUG) is advancing a strategic transition to a leaner, less capital-intensive model and reaffirmed its goal of achieving gross margin breakeven by Q4, RBC Capital Markets said in a Monday note.

According to the report, the company plans to monetize its New York electricity rights and suspend participation in the US Department of Energy loan program, moves expected to generate more than $275 million in liquidity and lift total unrestricted cash above $800 million.

Management reaffirmed its $700 million full-year revenue outlook, signaling a solid Q4, and said Plug is poised to achieve positive earnings before interest, taxes, depreciation, and amortization in H2 of 2026, according to the report.

Analysts view the actions as part of a broader pivot toward a simpler, higher-margin model focused on Plug's core material handling and electrolyzer segments, which have an $8 billion pipeline. Plug Power's Nov. 18 investor day is expected to outline plans for margin expansion, reduced cash burn, and long-term growth, analysts said.

RBC maintained its sector perform rating on the stock, with a price target of $1.50.

Shares of Plug Power were down more than 4% in recent Tuesday trading.

Price: 2.38, Change: -0.19, Percent Change: -7.23