Shares of Plug Power (NASDAQ: PLUG) are bouncing back today after yesterday's sell-off. After declining 3.8% when energy stocks got rocked by an oil price decline, Plug Power -- which specializes in the alternative energy source hydrogen, and produces fuel cells -- is seeing its stock rebound today.
As of 1:25 p.m. EDT on Tuesday, Plug Power is still up 2% after topping a 5% gain earlier in the day.
Why is this happening? First, no sooner had the sell-off happened than CEO Andy Marsh went on CNBC's Mad Money to declare that Plug Power has just passed 35,000 units of fuel cells deployed, and that "the hydrogen industry is just beginning," reports TheFly.com. That reassurance probably set many investor minds at ease.
Then this morning, following Marsh's interview, investment bank B. Riley raised its price target on buy-rated Plug Power stock by nearly 40% -- from $13 to $18 a shares -- explaining that the impending presidential election could see a Biden administration boost spending on green energy.
B. Riley believes that for the next several days at least, Plug Power stock will trade not on fundamentals but on investor sentiment about the prospect of a Biden presidency -- and a potential clean sweep in which Democrats take control of the House and Senate as well, then proceed to pass the Green New Deal.
For an unprofitable fuel cell company like Plug Power, that sure sounds like good news.
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