Plug Power Inc (PLUG) Stock Price: Renault rally has more room to run after 22% surge

  • NASDAQ: PLUG has surged by over 22% on Tuesday, hitting a new 52-week high above $66.
  • A deal with French carmaker Renault is behind the massive upswing.
  • Plug Power Inc's shares are set to extend their gains on Wednesday.

Plug Power Inc (NASDAQ: PLUG) has plenty of fuel in its tank to extend its rally. The Latham, New York-based company makes hydrogen fuel cell systems that serve as a substitute for legacy batteries and is geared toward the automotive sector – where its most recent boost came from.

Groupe Renault, the conglomerate behind the Renault cars which are common in Europe, signed a joint venture with Plug Power. The companies will set up a facility in France that would integrate the American firm's technology into the French carmaker's commercial vans. 

Renault CEO Luca de Meo and Plug Power CEO Andrew J. Marsh aim to capture over 30% of Europe's fuel cell-powered light commercial vehicles. The new joint venture includes not only a manufacturing facility, but also Research and Development, sales, and customer service.

The critical partnership places PLUG in the big league of global automakers and is behind the recent rally, which already values the firm at over $30 billion. It previously announced a deal with South Korea's SK and investors may already be eyeing new partnerships. 

Jeffrey Osborne, an analyst at Jefferies, said that the Renault deal serves as "validation" for the firm's technical ability in both electrolyzers and fuel cells, setting a price target of $73.50. 

PLUG stock forecast

NASDAQ: PLUG's surge of 22.33% on Tuesday comes after previous moves earlier in 2021, with shares more than doubling in value. Looking back to early December, Plug Power traded below $30. C

Can this impressive run continue? Wednesday's premarket trading data is pointing to another gain of over 5% to nearly $70. Will some take profits after the rally? There is a good chance that a downside correction is coming. 

More Best Stocks to Buy Forecast 2021: Vaccines and zero rates to broaden recovery

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD keeping its head above 21DMA at 0.7673 for now

AUD/USD saw downside during Monday’s Asia Pacific and early European session, dropping momentarily as low as 0.7660. The pair broke below an uptrend linking the 28 December 2020 high with the 4, 11 and 15 January lows.


EUR/USD is nearing the 1.2000 psychological threshold

EUR/USD corrective decline continues, with the pair approaching a critical psychological support level. Investors await Biden’s inauguration and ECB’s monetary policy decision.


XAU/USD fades recovery moves below $1,850, awaits fresh clues

Gold eases from the top of an immediate $10 trading range while declining to $1,837 at the start of Tuesday’s Asian session. The yellow metal took a U-turn from the lowest since December 01 the previous day as the US dollar stepped back after refreshing the one-month high.

Gold news

Stellar awaits a massive breakout but remains inside a no-trade zone

XLM has continued to trade sideways since we last reported about it. The digital asset remains locked inside a tightening range which will eventually burst. 

Read more

US Dollar Index: Immediately to the upside comes 91.00

DXY extends the march north and already trades at shouting distance from the 91.00 barrier, or new 2021 highs.

US Dollar Index News