JPMorgan Says Take the Money and Run, Downgrades FuelCell Energy (FCEL) to Underweight

January 14, 2021 4:46 AM EST
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Price: $6.46 +0.94%

Rating Summary:
    2 Buy, 9 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 25 | Down: 37 | New: 115
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(Updated - January 14, 2021 7:50 AM EST)

JPMorgan analyst Paul Coster downgraded FuelCell Energy (NASDAQ: FCEL) from Neutral to Underweight noting that Hydrogen pure-play stocks have outperformed the S&P 500 massively, y/y and in 2021 YTD. EV/sales multiples are elevated and, although may make sense when viewed against the massive long-term growth prospects, the analyst is looking for pullbacks to opportunistically build long-term positions.

The analyst initiated a $10 price target and sees shares as overvalued today. He stated "FuelCell’s SOFC solutions could take even longer to commercialize, but the firm also has strong backlog and a strengthened balance sheet with which to execute on the current portfolio of SureSource solutions. The optionality in FCEL lies in the versatility of its molten-carbonate technology in industrial applications (power, heating, hydrogen production, and carbon capture), so we monitor the stock for a breakout contract in the industrial, chemical, or energy sector. We raise our out-year revenue and earnings estimates for FCEL and establish a $10 price target today, but we think the stock richly valued here".

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 $19.14 yesterday.


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