Investors are running into Plug Power (PLUG) stock on Monday after the U.S. Senate extended tax benefits to the hydrogen industry in its latest rewrite of President Donald Trump’s tax-and-spending bill through the end of 2027.  

An earlier version of the bill proposed to keep the tax relief in place through the end of this year only. PLUG currently has three hydrogen factories in the U.S. – one in Georgia, one in Louisiana, and another in Tennessee. 

Including today’s run, Plug Power shares is up more than 100% versus its year-to-date low set in May.

Senate News May Unlock Further Upside in Plug Power Stock

The Senate’s extension of hydrogen tax credits is significant for PLUG shares since it will enable the clean energy firm to capitalize on federal incentives that directly support its core business for much longer than previously thought. 

With three operational hydrogen plants in the U.S., the Latham-headquartered company stands to benefit immediately from extended subsidies, enhancing production economics and accelerating revenue growth. 

All in all, investors are cheering Plug Power today because the Senate news made them sufficiently confident about the scalability and long-term viability of the company’s hydrogen infrastructure and its overall competitive positioning within that space. 

Are PLUG Shares Worth Buying at Current Levels?

Investors should still practice caution in buying Plug Power stock, at least at current levels, because the company’s financials are not particularly inspiring. 

In its latest reported quarter, the NYSE-listed firm continued to post negative margins coupled with high cash burn – raising concerns about its path to profitability. 

While an 11% increase in revenue that PLUG recorded for its Q1 last month may sound decent in isolation, it’s relatively underwhelming since it’s still in a high-growth, capital-intensive phase. 

Expectations tied to the hydrogen economy and the scale of its investments also demand that Plug Power grows at a much faster pace. 

How Wall Street Recommends Playing Plug Power

Despite the aforementioned concerns, Wall Street finds it reasonable to invest in PLUG stock for the long term. 

While the consensus rating on Plug Power shares currently sits at “Hold” only, analysts currently have a mean target of $1.96 on them, indicating potential upside of another 13% from here.