Plug Power weakness ‘a unique buying opportunity,’ says Cowen

Cowen analyst Jeffrey Osborne says he views the 10% after-hours pullback in Plug Power (PLUG) shares as “a unique buying opportunity,” arguing that the root cause of the company’s restatement has “nothing to do with future growth markets.” He also notes the restatement has no cash impact, which he reads to mean that “this was a true error in sale leaseback accounting reporting and not a nefarious event.” He believes the restatement has to do with the complex accounting treatment of sales leaseback accounting of fuel cell units, hydrogen delivery and related equipment largely for Walmart (WMT) and sees no attempt to “cook the books,” added Osborne. He keeps an Outperform rating and $75 price target on Plug Power shares, which are down $7.11, or 17%, to 35.57 in pre-market trading.