Shares of Plug Power Inc., a supplier of fuel cells for electric forklifts, rose the most in almost four weeks after an analyst said the company may supply components for 10 percent of the U.S. market by 2017 to customers that include Wal-Mart Stores Inc.
Plug climbed 16 percent to $4.85 at Tuesday's close in New York, the most since June 18.
Demand for electric forklifts is increasing and Plug’s annual revenue from fuel cells to power them may exceed $200 million by 2017, said Aditya Satghare, an analyst at Friedman Billings Ramsey & Co. in Arlington, Virginia.
Satghare initiated coverage of Latham, New York-based Plug after the close of trading Monday with the equivalent of a buy rating and an $8 price target, saying the company is likely to increase sales to existing clients, and is also well- positioned to reach the European market.
“The recent order wins at large marquee customers will have a follow-on effect, and we expect the company’s diverse customer base to continue to transition to hydrogen-based forklift fleet solutions,” he said in the note.
Plug sells and maintains hydrogen fuel cell systems for operators of large warehouses including Kroger Co. and Bayerische Motoren Werke AG. Fuel cells produce electricity from a chemical reaction.
“Plug Power has successfully made the transition from introducing fuel cell based systems to now offering fully integrated hydrogen based material-handling solutions,” Satghare said.
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