UPDATE: UPDATE: Wells Fargo Starts FuelCell Energy (FCEL) at Underweight

April 19, 2021 4:09 PM EDT
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Price: $8.18 +3.15%

Rating Summary:
    2 Buy, 9 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 38 | Down: 18 | New: 7
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(Updated - April 19, 2021 4:30 PM EDT)

Wells Fargo analyst Praneeth Satish initiates coverage on FuelCell Energy (NASDAQ: FCEL) with a Underweight rating, PT $9.00.

The analyst comments "We’re initiating coverage of FCEL with an Underweight rating and a price target of $9/share based on a blend of a three-stage DCF model, a target EV/EBITDA multiple (2025E) of 35x, and a target EV/sales multiple (2022E) of 30x. FCEL has a number of growth opportunities, including (1) distributed generation (stationary power), (2) distributed hydrogen, (3) long-duration hydrogen storage, and (4) carbon capture. However, the company is behind other fuel cell peers in terms of commercialization, and we struggle to see a path for FCEL to grow into its current valuation. Our 2021 and 2022 EBITDA estimates are -$28MM and $8MM, respectively."

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 $9.86 yesterday.

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