B.Riley FBR Thinks Fuelcell Energy’s Stock is Going to Recover

By Jason Carr

In a report released yesterday, Carter Driscoll from B.Riley FBR maintained a Buy rating on Fuelcell Energy (FCELResearch Report), with a price target of $3.50. The company’s shares opened today at $0.92, close to its 52-week low of $0.72.

Driscoll wrote:

“We base our $3.50 price target on an EV/sales multiple of ~2.0x on our FY19 revenue estimate of $139M. Risks High customer concentration. FuelCell Energy used to have customer concentration risk: POSCO, its largest strategic partner and minority owner in FuelCell, accounted for about 50% of total revenue in FY16. However, that level has declined substantially; and, while still an important customer, POSCO accounted for well under 5% of sales in F2Q18.”

According to TipRanks.com, Driscoll is ranked 0 out of 5 stars with an average return of -8.6% and a 34.6% success rate. Driscoll covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Amer Superconductor, and Canadian Solar Inc.

Currently, the analyst consensus on Fuelcell Energy is a Strong Buy with an average price target of $3.33.

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The company has a one-year high of $2.25 and a one-year low of $0.72. Currently, Fuelcell Energy has an average volume of 996.5K.

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FuelCell Energy, Inc. designs, manufactures, sells, installs and services stationary fuel cell power plants for distributed power generation. It offers renewable power markets. Its services also include engineering, procurement, and installation; and training.