Plug Power Downgraded at Roth/MKM
<p>Roth/MKM analysts downgraded <a href='https://financialmodelingprep.com/financial-summary/PLUG'>Plug Power (NASDAQ:PLUG)</a> from Buy to Neutral, adjusting their price target to $7.50, a reduction from the earlier $13.00. This follows the company’s announced Q2 profit miss, which resulted in a share price drop of more than 13% intra-day today.</p>
<p>The analysts point to gross margin challenges in the second quarter of 2023, indicating that these issues might not be swiftly resolved. This situation is signaling the likelihood of significantly higher cash plant commissioning costs than previously anticipated. Consequently, the analysts lowered their estimates, with a primary focus on the impact on gross margins.</p>
<p>They noted the company's cash burn of over ($1.6 billion) in the past year, which tempers the apparent progress in revenue. Moreover, despite the revenue growth, the company's unrestricted cash of $1 billion raises concerns that additional financing might be necessary in the near future. </p>
<p>The analysts highlighted that the management is actively seeking $1 billion in Department of Energy (DOE) project loans, which could potentially materialize by year-end. However, the analysts suggest that these loans wouldn't be sufficient to offset the operational cash burn.</p>

NASDAQ:PLUG