Plug Power (NASDAQ: PLUG) shares surged 6.81% in Thursday's pre-market trading, rebounding from recent steep declines as investors reassessed the company's long-term potential. The stock's uptick comes amid a mix of cautious optimism from analysts and indications of potential undervaluation.

The surge follows a tumultuous period for Plug Power, with the stock having dropped 30.4% over the past week and 44.1% in the last month. However, a recent discounted cash flow (DCF) analysis suggests the stock might be significantly undervalued. The DCF model calculates Plug Power's intrinsic value at $7.14 per share, indicating a potential 73.4% upside from current levels.

Adding to the positive sentiment, Canaccord Genuity analyst George Gianarikas maintained a Hold rating on Plug Power with a price target of $2.50. This stance, while cautious, suggests that the recent sell-off may have been overdone. Investors appear to be weighing the company's near-term challenges against its long-term prospects in the clean energy sector, particularly as the hydrogen fuel cell market continues to evolve. As Plug Power works to improve its financial position and capitalize on growth opportunities, market participants seem willing to bet on a potential turnaround.