Northland Capital Markets raised Plug Power (NASDAQ:PLUG) to Outperform from Market Perform, increasing the price target to $22 per share in a note Friday.
The firm's analysts said momentum is building for the hydrogen fuel cell company.
"We believe PLUG is now on a clear path to cash flow generation, and the momentum is picking up with every incremental deal announcement," they wrote.
"We now have confidence that the company should be able to achieve margin break even by the end of the year and generate cash flow next year. We see PLUG generating higher revenue from its electrolyzer business and achieving better margins," the analysts added.
PLUG shares are up almost 7% premarket. However, Northland sees "plenty of upside" to PLUG's current stock price, with "momentum building up as its compounding opportunities are evolving in the hydrogen world."