Keep an eye on hydrogen stocks, like Plug Power.
According to KeyBanc analyst Leo Mariani, Axios reported that a bipartisan group of senators met on April 25 to discuss a potential climate and energy bill could get 60 votes in the Senate and revive some elements of President Biden’s Build Back Better bill.
In fact, according to Axios, “The group’s Democrats are hopeful they can rescue a portion of the $550 billion in climate spending included in the president’s BBB proposal.”
If it happens, a bill could include a $3/Kg green hydrogen tax credit.
Even better, Goldman Sachs said hydrogen generation could be a $1 trillion per year market. Plus, “If we want to go to net-zero we can’t do it just through renewable power,” Michele DellaVigna, the firm’s commodity equity business unit leader, told CNBC. “We need something that takes today’s role of natural gas, especially to manage seasonality and intermittency, and that is hydrogen.”
Analysts seem to like the stock, too.
Susquehanna analysts, for example, set a new price target of $26 a share on the stock. Morgan Stanley has even said the pullback in PLUG is overdone, with a target of $65.
And, according to Barron’s: “Plug reaffirmed its 2022 goal of raking in between $900 million and $925 million in revenue, implying 90% revenue growth year over year. The forecast indicated that the figure is likely to be above analysts’ consensus forecast for $905.8 million.”