Plug Power Inc (PLUG) Shares Power On

“This is the car of a new era because it doesn’t emit any carbon dioxide and it’s environmentally friendly,” Abe told reporters. “The government needs to support this.”

China also announced last week it would make 30% of all its new government vehicles electric.

The news opens up a plethora of opportunities in a new and potentially extremely lucrative market for PLUG. It also sparked even more excitement in the emerging fuel cell space.

Additionally goosing PLUG shares last week, and igniting more enthusiasm in the sector, was FBR Capital Markets.

The firm initiated coverage of PLUG with an “Outperform.” FBR cited fresh U.S. orders, eventual expansion opportunities in Europe, and a breakthrough in the hydrogen delivery system solution for the rosy rating.

Roth set a 12-month price target of $8 for PLUG shares.

Charles Payne, a FOX Business News contributor, weighed in on Roth’s rating and price target. Payne, a watchful fan of PLUG, cautioned that PLUG shares are volatile and momentum driven. But he was quick to add he believes an $8 price is doable “sooner rather than later.”

Shares have been on a roller-coaster ride since January, when PLUG inked a deal with FedEx Corp. (NYSE: FDX) to develop hydrogen fuel cell extenders for 20 FedEx electric trucks. The news sent shares surging 68% to a 52-week high of $4.90. It also caught our eyes here at Money Morning, landing PLUG on our Penny Stocks Picks: 5 Under $5 piece.

PLUG shares were juiced again in late February when it received a sizable order from Wal-Mart Inc. (NYSE: WMT) to deliver 1,738 fuel cells over the next two years for WMT’s warehouse forklifts.

In addition to providing hydrogen fuel cell power packs for forklifts and other warehouse equipment, as well as providing the hydrogen needed, PLUG is looking to expand into other areas such as airport baggage handling equipment.

The recent news and new coverage has benefited other fuel cell companies. Ballad Power Systems Inc. (Nasdaq: BLDP) and FuelCell Energy Inc. (Nasdaq: FCEL) jumped 7.2% and 5.67% respectively Monday afternoon.

Money MorningWritten By Diane Alter From Money Morning

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