Plug Power gets another downgrade, shares plunge: 4 big analyst cuts

Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Plug Power, Vale, Advance Auto Parts , and Deckers Outdoor.

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Plug Power receives another downgrade, shares plunge

Plug Power (NASDAQ:PLUG) shares fell more than 6% pre-market today after Citi downgraded the company to Neutral from Buy and cut its price target to $5.00 from $12.50. This marks the eighth downgrade since the company reported disappointing Q3 results last week amid "unprecedented" hydrogen supply challenges.

Citi noted that initially, Plug Power was seen as a company rich in catalysts with potential for near-term growth, despite some medium-term challenges. However, expected catalysts such as GA commissioning, 45V clarification, H2 hubs, achieving breakeven margins, and strong sales growth did not materialize. The company's subpar execution has led to liquidity challenges.

“Although there is a narrow way out of the near-term issues, margin of error is small. The 45V PTC clarification, which was a potential catalyst, is now a much-needed lifeline, which could also pose insurmountable challenges if unfavorable,” commented the analysts.

Vale slashed at Deutsche Bank

Deutsche Bank downgraded Vale (NYSE:VALE) to Hold from Buy and cut its price target to $17.00 from $18.00, as reported in real-time on InvestingPro.

The analysts noted that after a significant rise in the shares, over 20% since the low in September, the downgrade is due to higher longer base metal costs. Despite seeing value in the medium term, the analysts noted that key near-term catalysts have already played out, including the recovery of iron ore prices, the sale of the Energy Transition Metals stake, and associated capital returns.

Vale's core iron ore business continues to be highly cash-generative, but future cash flows and shareholder returns are expected to be limited due to payments related to the Brumadinho and Samarco incidents. Furthermore, the analysts mentioned that the turnaround for Energy Transition Metals may take several years to deliver, and there's a possibility of a higher provision for Samarco being announced soon.

Two more downgrades

Advance Auto Parts (NYSE:AAP) shares fell more than 3% pre-market today after BofA Securities downgraded the company to Underperform from Neutral and cut its price target to $43.00 from $60.00.

Shares closed with more than a 4% loss yesterday after the company posted mixed third-quarter results, lowered its full-year guidance, announced a new CFO, and initiated separate sale processes for Worldpac and Canadian businesses.

Piper Sandler downgraded Deckers Outdoor (NYSE:DECK) to Neutral from Overweight with a price target of $650.00 (from $620.00). As a result, shares dropped more than 3% pre-market today.

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