Breaking News
Get 40% Off 0
🔎 See NVDA's full ProTips for an instant risks or rewards Claim 40% OFF

Morgan Stanley more cautious on Plug Power, says First Solar already prices in IRA benefits

Published Apr 03, 2023 02:32PM ET Updated Apr 03, 2023 02:39PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Morgan Stanley more cautious on Plug Power, says First Solar already prices in IRA benefits
 
FSLR
-2.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PLUG
-8.71%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sam Boughedda 

Morgan Stanley analysts downgraded Plug Power (NASDAQ:PLUG) to Equal-weight from Overweight and First Solar (NASDAQ:FSLR) to Underweight from Equal-weight in a note to clients Monday.

In the note on clean tech, they told investors that while they remain constructive on long-term renewables growth, "near-term risks are elevated" for several clean tech stocks.

PLUG's price target was cut to $15 from $35 per share, with the analysts explaining that while they continue to like the company's strategy to vertically integrate the green hydrogen ecosystem, several quarters of execution issues have made them more cautious about the pace of the company's revenue growth and margin improvement.

As a result, Morgan Stanley sees potential near-term financing risks, given the continued elevated levels of cash burn.

Meanwhile, the analysts raised the firm's price target on FSLR to $200 from $194. They described the company as one of the biggest direct beneficiaries of the IRA, which they estimate is worth ~$83/shr. However, they note that the stock has appreciated 196% since the IRA was announced, outperforming the rest of Morgan Stanley's clean tech coverage, and the firm now believes the stock "already prices in the significant benefits of the IRA."

"Going forward, we see risk of increased competition as domestic and international competitors expand in the US given the very supportive $0.17/W potential subsidy level available to panel manufacturers, which in our view, will likely drive down the long-term earnings profile of the company," they wrote.

Morgan Stanley more cautious on Plug Power, says First Solar already prices in IRA benefits
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email