Plug Power Inc. (PLUG), a supplier of fuel cells for electric forklifts, rose to the highest in more than two-and-a-half years after an analyst said the company’s order from Wal-Mart Stores Inc. (WMT) may lead to more customers including Coca-Cola Co. and Procter & Gamble Co.
Shares rose 14 percent to $5.34 at 11:09 a.m. in New York, the highest intraday price since May 20, 2011.
“The six-site Wal-Mart order is also a framework contract for future sites,” Rob Stone, an analyst at Cowen & Co., wrote today in a note to investors. “We expect more deals with customers” including Sysco Corp., Kroger Co. and Bayerische Motoren Werke AG. Stone raised his 12-month price target to $5.50 from $5.
Wal-Mart, the world’s largest retailer, will use more than 1,700 hydrogen fuel cell systems at six North American distribution centers, Latham, New York-based Plug Power said Feb. 26. Wal-Mart already uses 535 Plug systems at three sites in the U.S. and Canada.
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