Wal-Mart's fuel cell order lifts Plug Power shares

Wed Feb 26, 2014 12:08pm EST
 
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By Garima Goel

Feb 26 (Reuters) - Plug Power Inc said it would supply its hydrogen fuel cells to Wal-Mart Stores Inc, boosting an already strong order book and sending its shares up 19 percent.

The company did not disclose the value of the Wal-Mart order, but Cowen & Co analyst Robert Stone estimated it may be worth more than $50 million.

"We are sure that this is not the only order they will book this quarter," he said.

Orders have been pouring for New York-based Plug Power since French industrial gas manufacturer Air Liquide invested $6.5 million in the company last May.

Plug Power booked $32 million orders in the quarter ended Dec. 31 and had forecast higher orders for the first quarter.

Bookings jumped to $11 million between mid-May and October of 2013 from $1 million in the first five months.

The company's hydrogen batteries, used to power forklifts and other material-handling equipment, are in demand as they take lesser time to recharge than heavy lead-acid batteries.

Many of Plug Power's customers that include BMW and Procter & Gamble Co are also reordering.   Continued...