Oppenheimer Assigns a Buy Rating on Fuelcell Energy

By Carrie Williams

Oppenheimer analyst Colin Rusch assigned a Buy rating to Fuelcell Energy (NASDAQ: FCEL) today and set a price target of $4. The company’s shares opened today at $2.10.

Rusch noted:

“FCEL beat top- and bottom-line estimates as it began shipping product for its Korean backlog. While GM at 6.6% was modestly below expectations for 10.5%, we believe the company’s investment in optimizing its manufacturing assets and working off higher cost inventory coupled with a higher sales run-rate should lead to improving GM. Total backlog growth to $554M (from $437M Q/Q) and product backlog of $31M (from $1.6M Q/Q) at quarter-end is encouraging, in our view, especially in light of the incremental awards to LIPA, Toyota, and a Korean utility subsequent to quarter-end. We remain constructive on shares as the company is proving higher demand levels and executing on cost reduction measures.”

According to TipRanks.com, Rusch is a 4-star analyst with an average return of 7.1% and a 51.4% success rate. Rusch covers the Industrial Goods sector, focusing on stocks such as Capstone Turbine Corp, Amer Superconductor, and Canadian Solar Inc.

Fuelcell Energy has an analyst consensus of Moderate Buy, with a price target consensus of $4.

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 1.57M.

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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.