Plug Power's stock is up 1.9% on Wednesday, more than recovering from an after-hours plunge of more than 5% Tuesday after the firm missed third-quarter earnings projections.
Plug Power's third-quarter revenue came in slightly below analyst expectations and consensus, according to Morgan Stanley analyst Stephen Byrd. He did, however, say that the company's recent acquisitions have boosted revenue guidance.
According to Byrd, there is "a pretty clear road to gross margin improvement." He anticipates margin pressure to continue for a few more quarters as Plug converts its fuel distribution and service businesses.
The stock has an overweight rating and a $43 price objective from Byrd. Due to "risk to the upside from here," he said he's revising his projections and target.
In the late morning, Plug Power stock was trading at $41.51.