Oppenheimer Thinks Fuelcell Energy’s Stock is Going to Recover

By Ryan Adsit

Oppenheimer analyst Colin Rusch reiterated a Buy rating on Fuelcell Energy (FCELResearch Report) today and set a price target of $2. The company’s shares opened today at $0.55, close to its 52-week low of $0.47.

Rusch said:

“FCEL posted results largely in line with consensus as it continues to shift its business toward increased generation asset ownership. We are encouraged to see FCEL procuring substantial construction finance and expand its pool of asset-backed lenders for long-term project finance. We believe execution on this initiative can bring the company to cash flow breakeven. We lower our expectations for F19 product sales to Korea as the year is off to a slow start. Additionally, we lower our price target to $2 (from $4) based in part on lower revenue, but also on substantially higher dilution than we anticipated as it pays its recent debt instrument in equity. We remain bullish on shares as we believe FCEL has sufficient cash to reach break-even EBITDA.”

According to TipRanks.com, Rusch is a 4-star analyst with an average return of 7.0% and a 44.2% 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 $2.43.

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Based on Fuelcell Energy’s latest earnings release for the quarter ending July 31, the company reported a quarterly GAAP net loss of $15.88 million. In comparison, last year the company had a GAAP net loss of $9.98 million.

Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is neutral on the stock.

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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.