Cowen and Company affirms FuelCell Energy (Nasdaq: FCEL) at Outperform with a price target of $3 following Q1 results reported earlier in the session.

Analyst Jeffrey Osborne noted that FCEL's Q1 revenue of $41.7 million and loss of $0.02 per share compared with the firm's revenue estimate of $48.1 million and loss of $0.02 per share.

On the results, Osborne commented, FuelCell reported 1QFY15 revenue noticeably below management's quarterly run rate expectations of $50 to $60 mn, which was provided last quarter. However, gross margins have expanded meaningfully since 1Q14, which has helped to bolster EPS. Importantly, total backlog increased 3% q/q, with service growing strongly and advanced technology expanding, offset by a falling product sales backlog.

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FuelCell Energy closed at $1.28 yesterday.