Plug Power’s stock plummets as financial restatement, accounting errors prompts analyst downgrade

Shares of Plug Power Inc. PLUG, -8.14% plummeted 17.7% in premarket trading, after the fuel-cell company’s announcement of a restatement of financials because of accounting errors prompted a downgrade at Truist. Analyst Tristan Richardson cut his rating to hold from buy, while slashing his price target by 35% to $42, from $65. “We have been generally constructive the company’s fundamental outlook long-term; however, following these disclosures we expect limited opportunity for
outperformance in the near-term,” Richardson wrote in a note to clients. “While the company reiterated long-term targets and the accounting issues appear transitory in nature, we see limited upside until resolution, particularly amidst a broader re-rate in alternative energy-oriented equities.” The stock has rallied 39.6% over the past three months through Tuesday and soared 1,201.2% over the past 12 months, while the S&P 500 SPX, -0.16% has gained 6.5% the past three months and advanced 56.7% the past year.

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