Roth Capital Sees Relatively Flat Q3 for FuelCell (FCEL), But Says Co. Still has Robust Pipeline

September 6, 2016 11:16 AM EDT
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Roth Capital affirms FuelCell Energy, Inc. (Nasdaq: FCEL) with a Buy rating and $12 price target ahead of the company's upcoming FQ316 report, which is expected out on September 7th.

Analyst Craig Irwin sees Q3 results coming in flat-to-slightly-weak versus consensus estimates. We are forecasting F3Q16 revenue/EPS/EBITDA of $36.9m/($0.39)/($8.1m) with the consensus at $32.3m/($0.39)/($4.8m), respectively. We don't view quarterly results as particularly meaningful at this point, given the significant bookings necessary to backfill the POSCO transition, and apparent market skepticism this will be achieved, the analyst noted.

Other points noted by Irwin:

  • We believe the current pipeline is much broader than previously appreciated. FCE's pipeline outside of Asia represents ~$2bn in possible bookings, and we will monitor opportunities including the CT-DEEP, PSE&G, California, and carbon capture.
  • Decisions for the New England Clean Energy RFPs are delayed, where bids remain valid through Oct. 23, 2016, and we remain positive on potential for the $500m 63MW Beacon Falls project.
  • The recent structured financing buffers the capital position, adding $34.7m in net cash, lowering the probability of a financing event after any near-term large project award.

For an analyst ratings summary and ratings history on FuelCell Energy click here. For more ratings news on FuelCell Energy click here.

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