Bullish option flow was detected in PLUG stock on January 15, 2021. The bullish option flow amounts to $5.4 million as of mid-day trading.
On January 13, 2021, B. Riley Securities analyst Christopher Souther raised the firm’s price target on Plug Power to $79 from $52 and kept a Buy rating on the shares after the company signed a memorandum of understanding with Renault to launch a 50/50 joint venture for fuel cell-powered light commercial vehicles in Europe. The analyst sees the agreement as a “significant positive” for Plug Power. It provides a “strong” partner to build out local manufacturing, hydrogen infrastructure, and R&D for within the European continent, Souther tells investors in a research note. While the new target multiple is expensive, Plug Power has “strong catalysts on the horizon” for revenue upside, says the analyst.
On January 13, 2021, Craig-Hallum analyst Eric Stine raised the firm’s price target on Plug Power (PLUG) to $79 from $60 and keeps a Buy rating on the shares. The analyst notes that Plug has announced a Memorandum of Understanding with Groupe Renault (RNDSF) in Europe for the launch of a 50/50 JV focused on the introduction of fuel cell technology in light-commercial vehicle applications. Stine believes this agreement with a major auto OEM is further strong validation of Plug as a technology provider of choice and a company to be reckoned with as fuel cells are increasingly viewed as an attractive technology as part of decarbonizing transportation.
On January 13, 2021, H.C. Wainwright analyst Amit Dayal raised the firm’s price target on Plug Power to $85 from $60 and keeps a Buy rating on the shares. The company’s second major partnership announced within a span of a week “cements” its position as the leading hydrogen and fuel cell play in the world, Dayal tells investors in a research note. He believes the partnership with Groupe Renault is partly being driven by a favorable regulatory environment for non-combustion engine vehicle adoption in Europe.
On January 12, 2021, Groupe Renault, top automotive player, and Plug Power Inc. (NASDAQ: PLUG), global leader in fuel cell systems and hydrogen related services, announced the signature of a Memorandum Of Understanding (MOU) to launch a 50-50 joint-venture based in France by the end of the first half of 2021. This strategic JV will position Groupe Renault and Plug Power to become key players in Europe in the research and development (R&D), transformation, manufacturing and sale of fuel cell-powered vehicles and hydrogen turn-key solutions in the coming years. This joint-venture platform will serve the fast-growing market of fuel cell light commercial vehicles, taxis, and commercial people transportation.
Bringing complementary and competitive strengths together, this joint venture will build on Groupe Renault’s pioneering experience in new energies and strong position in electric light commercial vehicles and on Plug Power’s 20 years of experience in fuel cell technologies and hydrogen solutions. A global leader in hydrogen ecosystem solutions, Plug Power has deployed over 40,000 fuel cell systems, designed and built 110 refueling stations that dispense more than 40 tons of hydrogen daily, and is a technology leader in green hydrogen solutions via electrolysis.
The company intends to offer unique, comprehensive, differentiated products and solutions to the LCV market, designed around 3 key pillars:
- R&D: Groupe Renault and Plug Power intend to establish an Innovation Center for the development of fuel cell technology and hydrogen fuel cell LCV vehicles based on existing and future Groupe Renault platforms. The initial focus will be on the heavy van segment utilizing the Traffic and Master vehicle platforms. This center will be unique in combining R&D efforts of fuel cell and vehicles with integrated engineering teams.
- Manufacturing: the joint-venture will combine the vehicle manufacturing capabilities of Groupe Renault with the fuel cell and hydrogen system manufacturing knowledge of Plug Power, establishing a vertically integrated fuel cell stack and system manufacturing center in France for integration into LCV vehicle platforms. In addition, this manufacturing center will provide hydrogen refueling systems, a key part of the hydrogen ecosystem.
- Sales: this partnership will create a hydrogen vehicle eco-system solution company that offers vehicles, hydrogen fueling stations, hydrogen fuel, and services to customers. This comprehensive solutions approach will accelerate adoption by commercial fleets.
The JV will start commercializing fuel cell LCV’s in Europe starting in 2021 with pilot fleet deployments.
Luca de Meo, CEO of Renault, declared: “This joint-venture project is fully aligned with our strategy to offer market ready H2 solutions for LCVs. With Plug Power, we will build a unique end-to-end fuel cell value chain and offer turnkey solutions for customers including vehicles, refueling stations and decarbonized hydrogen delivery. With this project, our ambition is to position France as a bridgehead of industrial, technical and commercial development in this key technology, and to strengthen our leadership in Europe as our objective is to become the European leader in fuel cell LCV”.
“Plug Power prides itself on being at the leading edge of innovation in the hydrogen fuel cell industry, which is why we are thrilled to partner with Groupe Renault to become a leader of market fuel cell heavy vans in Europe. We look forward to working with our new partners to combine our technology with their decades long experience leading the European automotive market,” added Andy Marsh, CEO of Plug Power.
Groupe Renault and Plug Power will provide the stand-alone joint-venture with the required resources to achieve its objectives. Finalization of this joint venture is pending on the conditions normally applicable to this kind of operation, among which the presentation to employee representative bodies in accordance with applicable regulations and the potential clearance from the relevant competition authorities and should be completed by the end of the first half of 2021.