Canaccord Genuity Reiterates Hold Rating on FuelCell Energy (FCEL)

Canaccord Genuity analyst Jed Dorsheimer reiterated a Hold rating and $12.00 price target on FuelCell Energy (NASDAQ: FCEL).

The analyst commented: "FuelCell's October quarter performance was sound, driven by strong revenue associated with the 10-module FuelCell delivery to Gyeonggi Green Energy Co., Ltd. (“GGE”). However, profitability remained under pressure with ongoing gross and EBITDA losses, as the company continues implementing cost-reduction measures. The company also continues to focus on its data center efforts, although the earnings release did not have a material update. On the call, management noted that the company currently has "hundreds of MWs of pricing proposals out across the whole digital infrastructure ecosystem." Potential customers include hyperscalers, utilities, power companies, land developers, large infrastructure players and financial sponsors. According to management, "it cuts across some direct conversations with hyperscalers, also with utilities. We are also having... those conversations with infrastructure players and sponsors... What we're finding in those conversations is really a strong interest in our distributed generation platform." The market — like us — is now looking for proof that FuelCell’s data center initiatives will deliver tangible outcomes. This could be a pivotal moment for the company, with next year serving as a key indicator of its progress. We reiterate our HOLD rating and our $12 target. We acknowledge the upside implied by our price target of $12. However, we believe HOLD is the appropriate rating given near-term growth prospects in the data center space and the continued loss reduction from restructuring efforts."

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

Shares of FuelCell Energy closed at $9.64 yesterday.

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