Fuelcell Energy Received its Third Buy in a Row

By Austin Angelo

After Roth Capital and Oppenheimer assigned a Buy rating to Fuelcell Energy in the last month, the company received another Buy, this time from B.Riley FBR. Analyst Carter Driscoll maintained a Buy rating on Fuelcell Energy (NASDAQ: FCEL) today. The company’s shares closed yesterday at $1.80.

Driscoll wrote:

“F1Q18 beat; ITC should drive more U.S. business. FuelCell Energy (FCEL) delivered F1Q8 revenues and EPS above our expectations and Street estimates, largely from the delivery of equipment for a 20 MW fuel cell project with KOSPO in South Korea. The company’s generation portfolio remains on track. We believe the company should be able to almost triple its operating portfolio from FY17 to FY18, moving from a portfolio of 11.2 MW (generating electricity revenues under long-term PPAs) to over 30 MW. We also believe the company should be able to garner another multi-MW equipment sale and long-term service agreement with a second Korean power producer. Backlog and product awards remained at record levels at $1.6B and recent favorable tax credits (ITC and carbon sequestration) should accelerate U.S.-based business. We largely maintain our FY18E and FY19 estimates and our PT of $3.50, which 1.5x EV/sales on our FY19 revenue estimate of $156M.”

According to TipRanks.com, Driscoll is ranked 0 out of 5 stars with an average return of -8.1% and a 30.6% success rate. Driscoll covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Amer Superconductor, and P10 Industries Inc.

Currently, the analyst consensus on Fuelcell Energy is Strong Buy and the average price target is $3.67, representing a 103.9% upside.

In a report released yesterday, Oppenheimer also maintained a Buy rating on the stock with a $4 price target.

The company has a one-year high of $2.49 and a one-year low of $0.80. Currently, Fuelcell Energy has an average volume of 1.28M.

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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.