Is Plug Power (PLUG) One of the Best US Penny Stocks to Buy?

Plug Power Inc. (NASDAQ:PLUG) is one of the 10 Best US Penny Stocks to Buy. On December 31, Clear Street upgraded its rating on Plug Power Inc. (NASDAQ:PLUG) from Hold to Buy but also lowered its price target from $3.50 to $3.00.

The research firm that the stock now offers “attractive upside potential” from the current stock price. Clear Street noted that the opportunity is now more compelling than when Plug Power Inc. (NASDAQ:PLUG) was trading at around $4.00 in early October.

Clear Street cut the price target mainly because of dilution from the company’s convertible refinancing, which was completed in late November. The firm also applied a slightly lower valuation multiple to its 2027 sales forecast. The new price target of $3.00 is based on a valuation of 4 times expected enterprise value to sales, using Clear Street’s 2027 sales estimate of $1.07 billion.

According to the research firm, this valuation is still slightly higher than Plug Power Inc.’s (NASDAQ:PLUG) three-year historical average. Clear Street’s analysis suggests that this premium valuation reflects expected cost savings, a lower annual cash burn rate, and improving opportunities for European refinery electrolyzers.

Previously, on December 18, Craig-Hallum also reiterated a Buy rating on Plug Power Inc. (NASDAQ:PLUG). Overall, the 12-month median price target of $2.50 set by analysts indicates a potential upside of 13% from the current stock price.

Plug Power Inc. (NASDAQ:PLUG) is a global company specializing in hydrogen fuel-supply solutions. It provides electrolyzers, liquid hydrogen, fuel cell systems, storage tanks, and fueling infrastructure to various industries, including material handling, industrial applications, and energy producers.

While we acknowledge the potential of PLUG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best New Penny Stocks to Invest In and 13 Best Gold Mining Companies to Invest In Now.

Disclosure: None. This article is originally published at Insider Monkey.