Plug Stock Prediction: Electric Buses Vs. Fuel Cell Buses: Plug Power Has A Stake In The Winner

Summary

  • Public transportation systems are slowly integrating hybrid diesel-electric, full electric and fuPlug Stock Predictionel cell buses.
  • Both technologies hold promise with advantages and disadvantages.
  • Plug Power should be able to benefit from buses as the largest transportation fuel cell player in the US.
  • Algorithmic analysis is bullish on Plug Power in the 1-month, 3-month and 1-year time horizons.

The demand for public transportation is increasing each year. This is driven largely by global urbanization and population growth. At the same time, the growing need for renewable energy and zero emission transportation is creating a new way of meeting the demand needs. The trend for hybrid diesel-electric buses has grown for several years with examples such as the New Routemaster hybrid bus in London – released on the road in 2012. The average cost of a diesel bus is around $300,000-$400,000. However, hybrid buses average around $600,000, making their initial purchase price much higher (50%-100% more). The New Energy World Industry Group (NEW-IG) “Urban Buses: Alternative Powertrains For Europe” report found that two solutions are functional and operational in the public transport sector.

 Algorithmic Analysis: Plug Stock Prediction

The stock is now down 65% in 1-year and 15% in the last 3 months. We believe that this 15% represents the downside risk over the next year, and has a fairly high chance of materializing. However in the long term the stock’s upside potential is huge. Fuel cell technology had a hard time being noticed as much of the earlier development was focused on competing with batteries and solar alternatives. Now that the equipment is being utilized where battery and solar have much less applicability, it offers an attractive steady growth model over time. This long-term value growth supported by our algorithmic analysis makes our stance bullish on Plug Power for the 1 month, 3 month and 1 year horizon.

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