Plug Power's (PLUG) slight increase to its 2026 revenue guidance reflects strong confidence in the H2 outlook, RBC Capital Markets said in a note Monday.
The company's Q2 results beat expectations, driven by better equipment and Power Purchase Agreement margins, and benefiting from provisions for loss contracts related to service, the investment firm said.
The company's revenue growth and continued margin improvement will be key to achieving positive EBITDA in Q4 and longer-term targets of positive operating income in 2027 and full profitability in 2028, according to the note.
Plug Power could take a couple more years before achieving cash flow breakeven, but RBC said the company likely does not require external financing in 2026.
RBC Capital Markets has a sector perform, speculative risk rating on the stock, with a $2.75 price target.
Shares of Plug Power were up 2.8% in Tuesday trading.
Price: $2.17, Change: $+0.06, Percent Change: +2.84%