Why Jefferies Still Wants Plug Power to Prove Its Margin Gains Can Last

Plug Power Inc. (NASDAQ:PLUG) is 1 of the best renewable vigor penny stocks to buy.

On March 9, 2026, Jefferies chopped its terms people connected Plug Power Inc. (NASDAQ:PLUG) to $1.80 from $2.00 portion maintaining a Hold rating, pointing to concerns astir whether the company’s improving borderline illustration tin beryllium sustained. The enactment said Plug reiterated its anticipation for affirmative EBITDA successful 2026, but Jefferies inactive views that outlook arsenic a “show me” story.

The steadfast besides said Plug’s fourth-quarter gross borderline benefited partially from one-off items, adjacent arsenic it acknowledged amended liquidity and expected show enactment from worldly handling and electrolyzers successful 2026. For context, Plug reported fourth-quarter 2025 gross of $225.2 million, up 17.6% from the prior-year quarter, portion full-year 2025 gross roseate 12.9% to astir $710 million. The institution posted a affirmative fourth-quarter gross nett of $5.5 million, oregon 2.4% of sales, versus a gross borderline nonaccomplishment of antagonistic 122.5% a twelvemonth earlier.

Photo by Possessed Photography connected Unsplash

Management said the betterment was driven by higher income volume, a amended mix, terms increases connected immoderate offerings, substance web enhancements, little work outgo per unit, and manufacturing ratio gains tied to Project Quantum Leap. Plug besides ended 2025 with $368.5 cardinal successful unrestricted cash, said an plus monetization statement is expected to make much than $275 million, and reported that nett currency utilized successful operations fell 26.5% twelvemonth implicit twelvemonth to $535.8 million.

Plug Power Inc. (NASDAQ:PLUG) develops hydrogen substance compartment systems, electrolyzers, hydrogen accumulation infrastructure, and related solutions for worldly handling, industrial, and vigor markets.

While we admit the imaginable of PLUG arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double successful 3 Years and 15 Stocks That Will Make You Rich successful 10 Years Disclosure: None. Follow Insider Monkey connected Google News.