FCEL Stock Headed For Best Single-Day Gains In Over A Year — Why UBS Tripled Its Price Target For FuelCell

UBS analyst Manav Gupta cited FuelCell’s recently announced strategic partnership with Fit Energy USA as the basis for the bullish outlook on the company.

• Gupta highlighted that FuelCell’s agreement with Fit Energy includes an expanded production plan targeting up to 500 MW annually, supported by a planned $200 million to $275 million investment over the next 24 months.
• Jefferies said FuelCell's outlook has shifted from a "show me" story to one focused on executing a visible backlog.
• The firm said FuelCell trades at a significant valuation discount to Bloom Energy, creating an “asymmetric entry point” for investors.

FuelCell Energy Inc. (FCEL) shares were on track for the best single-day gains in more than a year after Wall Street cheered the company’s latest pact with Fit Energy USA.

According to TheFly, UBS more than tripled its price target for FuelCell to $22 from $7.25, while keeping a ‘Neutral’ rating on the stock.

FuelCell shares were up more than 25% in Friday morning’s trade. FCEL was among the top trending tickers on Stocktwits at the time of writing.

Wall Street Turns Bullish On FCEL

UBS analyst Manav Gupta cited FuelCell’s recently announced strategic partnership with Fit Energy USA as the basis for the bullish outlook on the company.

Gupta highlighted that the agreement includes an expanded production plan targeting up to 500 MW annually, supported by a planned $200 million to $275 million investment over the next 24 months.

Jefferies upgraded FuelCell Energy to ‘Buy’ from ‘Hold’ and raised its price target to $24 from $16 following the agreement with Fit Energy to provide power for data centers using its utility-scale fuel cell technology.

The firm said FuelCell's outlook has shifted from a "show me" story to one focused on executing a visible backlog, while its "deep valuation discount" relative to Bloom Energy Corp. (BE) creates an "asymmetric entry point" for investors.

FCEL CEO Says Deal Validates Decision To Expand Capacity

FuelCell’s agreement with Fit Energy, announced Wednesday, includes an immediate deposit for an initial 30 MW of power, with deliveries expected to begin later this year.

FuelCell Energy said Fit Energy could also receive warrants tied to future deployment milestones of up to 380 MW, a structure designed to align incentives with project execution and customer deployments.

CEO Jason Few said the deal validates the company's decision to expand annual production capacity to 500 MW to meet growing demand from data center customers.

“We’ve engaged with a diverse range of prospective customers across the digital infrastructure landscape, and Fit Energy has distinguished itself through its commitment to ‘energy as a service’ power solutions that support both communities and the environment,” Few added.

What Retail Investors Think Of FCEL Stock

Retail sentiment on Stocktwits around FuelCell trended in the ‘bullish’ territory, with message volumes at ‘high’ levels at the time of writing.

FCEL stock is up 240% year-to-date and 317% over the past 12 months. The Invesco WilderHill Clean Energy ETF (PBW) is up 86% over the past 12 months, while the S&P Kensho New Economies Composite ETF (KOMP) is up 27%.

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