What Made B.Riley FBR Upgrade Fuelcell Energy’s Stock?

By Carrie Williams

In a report released today, Carter Driscoll from B.Riley FBR upgraded Fuelcell Energy (NASDAQ: FCEL) to Buy, with a price target of $3.50. The company’s shares closed yesterday at $2.01.

Driscoll wrote:

“Upgrade to Buy; multiple opportunities not fully reflected in the stock. We are upgrading FCEL to a Buy from Neutral and raising our PT to $3.50 from $2.50. After a difficult 1HFY17, we believe FCEL has turned a corner with an improving revenue mix, margin profile, and record backlog. We believe the company should be able to almost triple its operating portfolio from FY17 to FY18, moving from a portfolio of 11.2MW (generating electricity revenues under long- term PPAs) to over 30MW. 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.”

According to TipRanks.com, Driscoll is ranked 0 out of 5 stars with an average return of -3.9% and a 37.5% 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 $3.50, representing a 74.1% upside.

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

Based on Fuelcell Energy’s latest earnings report for the quarter ending October 31, the company posted quarterly revenue of $47.89 million and GAAP net loss of $9.98 million. In comparison, last year the company earned revenue of $24.47 million and had a GAAP net loss of $12.86 million.

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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.