Plug Power Inc. (NASDAQ: PLUG) shares might be down for now. But the Plug stock forecast for 2025 looks bright.
Sure, we expect the massive electric vehicle renaissance to continue. But when you dive deeper into this space, you realize it's about so much more than cars. It's about power.
This company stands for the future of something far bigger than transportation.
Plug Power develops hydrogen fuel cell systems expected to eventually replace conventional batteries. This is primarily in electric vehicles, but it extends to other battery-powered areas as well.
Yes, you'll find varying opinions on the matter, namely Elon Musk calling hydrogen fuel cells "fool cells" and even "mind-bogglingly stupid."
But often, Musk-isms like these can be explained away by asking, "Who benefits?" Or, who's got the most at stake in making such a claim?
The person who said it, of course, Elon Musk, benefits from tearing down hydrogen fuel cells, promoting his own Telsa lithium-ion battery.
Tell it to the over 23,000 forklifts running on hydrogen today.
Tell it to the 1,000 auto executives surveyed in 2017, who said hydrogen fuel cells would ultimately outperform battery-powered EVs.
Tell it to the majority of analysts who agree that Plug Power stock could double or triple within the next decade...
Plug Stock Forecast 2025
Despite the sad performance of this stock recently, investors are still incredibly bullish on Plug Power. The growing EV market and the growing power of the Plug name make it hard to get behind the few remaining bearish analysts.
These are the guys that agree with Elon Musk, like Barclays' Moses Sutton. He doesn't like hydrogen power and doesn't see much of a future in it.
If he and Musk are right, it would have hugely negative implications for companies like Plug. Hydrogen fuel cells are their bread and butter.
But what if he's... half-right?
It turns out a Toyota engineer, Yoshikazu Tanaka, agrees that it's better to charge an EV by plugging in rather than using hydrogen as constant fuel. However, he was careful to add that this doesn't take away from the viability of hydrogen as a gas alternative.
That's why Toyota is so invested in hydrogen. The world's second-largest automaker has sold 5,000 of its hydrogen fuel cell car, the Mirai, since it launched in 2015.
Honda has a similarly large commitment to hydrogen, with nearly 1,100 hydrogen fuel cells on the road in the United States.
Both companies are teaming up with Shell Oil to build new hydrogen fueling stations in California.
And California aims to build 200 hydrogen stations by 2025.
That's all to say that hydrogen does appear to have a promising future, especially in vehicles.
Thus, it should come as no surprise that the high analyst target for Plug Power stock is $78, or 168%, over the next 12 months.
Projection firm WalletInvestor has it hitting $82 by 2025, but if Plug manages to pop 168% this year alone, it would mean hydrogen is taking off.
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In that event, we can expect Plug stock to go as high as $150 by 2025, which would be a 313% return.
Really, hydrogen fuel is a massive trend backed by more than "fools." And most analysts agree it will at least play some role in replacing gas.
Now, here's when you should buy Plug stock...
The Technical Case for Plug Stock
In March 2021, Capital.com said if Plug stock doesn't break $48, it will slide further toward $30. The stock has since fallen from a 100-day moving average of $39 to $29 as a new "support" range.
The all-time high for Plug stock is around $66, and it could likely bounce higher than that in the next several months alone.
One reason we know Plug has found bottom is that the relative strength index (RSI) is currently above 60, indicating more support for the stock than when it started falling from $48 with an RSI below 50.
RSI basically shows whether the stock is overbought or oversold. There tends to be resistance on the RSI chart around 50 and 60.
Previously, the stock was in "oversold" mode with under 50 RSI, priced at its lowest level in the last 12 months. This meant the stock was losing momentum.
Now that it's recovering at 60, Plug stock could either break through and surge over a few months or flatline.
Hyperbolic growth could very well be the reality, with what we expect from the EV industry in the coming years...
Plug Stock Is a Big EV Industry Play
The electric vehicle industry is projected to soar within the next decade. Allied Market Research says it could hit $802 billion by 2027, which would be a 395% growth target from $162 billion in 2019.
You could look at flashy EV stocks like Tesla Inc. (NASDAQ: TSLA) to get in on this growth. But you might be disappointed.
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Most of the growth we've seen out of Tesla has likely been realized for the time being. And Tesla's growth even threatens to halt on souring relations with China and increasing competition in the EV industry.
It's time to dive deeper and look at what sectors will benefit most from EVs becoming normal.
Most of the time, you can't drive five miles without seeing a gas station on the side of the road. Now, imagine that being the case with hydrogen stations.
Hydrogen stations are being built out right alongside EV chargers. Even if they take a backseat to conventional battery chargers, hydrogen power has already made enough headway to be considered a viable power source.
This will especially be true as U.S. states and other nations around the globe move to eliminate carbon emissions and encourage a more EV-centered society. EVs will become cheaper, and they will become the standard.
With that in mind, buying Plug stock today, while it's at an all-time low, is like buying it at a discount. You're getting even more upside than you would have, had the stock not taken a dip.
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About the Author
Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.