JPMorgan Says Take the Money and Run, Downgrades FuelCell Energy (FCEL) to Underweight
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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".
Shares of FuelCell Energy closed at $19.14 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades, Hot Downgrades
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