Shares of Plug Power (PLUG) tumbled 5.48% in pre-market trading on Monday, following a bearish analyst report from Morgan Stanley. The significant drop comes as investors react to the downgrade and drastic reduction in price target for the hydrogen fuel cell company.
Morgan Stanley analyst Andrew Percoco maintained a Sell rating on Plug Power while slashing the price target to a mere $0.50. This represents a substantial downward revision from the previous target and suggests severe financial challenges for the company. The analyst's pessimistic outlook appears to be driven by concerns about Plug Power's financial stability and uncertainties surrounding its future funding prospects.
The stark downgrade and price target cut are likely to fuel investor anxiety about Plug Power's long-term viability in the competitive clean energy sector. As the market digests this negative assessment from a major Wall Street firm, it could potentially lead to further selling pressure on PLUG stock in the coming trading sessions. Investors will be closely watching for any response from Plug Power's management or additional analyst perspectives to gauge the company's path forward.
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