UPDATE: UPDATE: Wells Fargo Starts FuelCell Energy (FCEL) at Underweight
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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."
Shares of FuelCell Energy closed at $9.86 yesterday.
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