By Sam Boughedda
Investing.com — Plug Power (NASDAQ:PLUG)'s shares are up 1.9% on Wednesday, more than recovering from a drop of over 5% after-hours Tuesday after the company missed third quarter earnings estimates.
Morgan Stanley analyst Stephen Byrd told investors that Plug Power's third quarter revenue came in slightly below his estimate and consensus. However, he said that the company's recent acquisitions have driven an optimism on revenue guidance.
There is "a pretty clear path to gross margin improvement," Byrd said. He said he expects another few quarters of margin pressure as Plug transitions its fuel delivery and service businesses.
Byrd currently has an overweight rating and $43 price target on the shares. He said he is revaluating his estimates and target due to "risk to the upside from here."
Plug Power shares are trading around $41.51 in the late morning.