FuelCell Energy stock sinks after J.P. Morgan analyst turns bearish, saying it's 'richly valued'
Shares of FuelCell Energy Inc. (FCEL) sank 7.1% in premarket trading Thursday, after J.P. Morgan analyst Paul Coster turned bearish on the alternative energy company, suggesting the stock should be worth about half of its latest closing price. Coster cut his rating to underweight from neutral and established a $10 stock price target, which is 47.8% below Wednesday's close of $19.14. Coster likes the company, as he says it has a "strong backlog and a strengthened balance sheet." He says FuelCell's optionality likes in the versatility of its molten-carbonate technology in industrial applications, and he is anticipating a "breakout contract" in the industrial, chemical or energy sector. The problem is, Coster said he thinks the stock is "richly valued" at current levels. The stock had soared 80.4% amid a seven-day win streak to close Wednesday at the highest price since June 2018. Separately, Coster started fellow alternative energy company Plug Power Inc. (PLUG) with a neutral rating, saying that while the stock is his top pick in the hydrogen space, the price is "fully valued." (http://www.marketwatch.com/story/plug-power-stock-set-to-snap-long-win-streak-after-jp-morgan-says-it-is-fully-valued-2021-01-14) FuelCell's stock has skyrocketed nearly eight-fold (up 687.7%) over the past three months through Wednesday, while the S&P 500 has tacked on 9.2%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 14, 2021 08:35 ET (13:35 GMT)
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