Plug Power (NASDAQ: PLUG) is a pioneer in the hydrogen sector, and analysts generally think hydrogen fuel has a bright future. Forecasts regarding the industry point to major growth in hydrogen supply and demand over the coming years. Some estimates believe this growth will be sustained for decades to come.
Why, then, has Wall Street been so bearish on Plug Power stock over the past few years? There’s one glaring culprit.
On paper, Plug Power is a growth stock. The company is a major designer and manufacturer of hydrogen fuel systems, a market that is expected to grow by leaps and bounds through the year 2050. Digging deeper, however, reveals a more complex story. The complexity is why many analysts are bearish on the stock. Morgan Stanley, for example, predicts more than 50% downside potential for Plug Power over the next 12 months.