Why Is FCEL Stock Climbing Higher Premarket Today?

Jefferies analyst Dushyant Ailani hiked the price target on FuelCell Energy by more than 100%, updating it to $16 from a previous $7.20, according to The Fly.

• Ailani cited FuelCell’s growing pipeline, which tripled quarter over quarter to 4 gigawatts, as a major catalyst for the hike.
• B. Riley also raised the price target on the company to $13 from $8 and kept a ‘Neutral’ rating on the shares. 
• CEO Jason Few said on the latest earnings call that FuelCell’s potential data center customers now account for about 89% of its pipeline.

Shares of Fuelcell Energy Inc. (FCEL) gained more than 4% in the premarket session on Thursday, as a series of bullish price target updates from Wall Street analysts improved sentiment.

On Wednesday, Jefferies analyst Dushyant Ailani raised the price target on FuelCell by more than 100%, updating it to $16 from $7.20, according to The Fly. The analyst maintained a ‘Hold’ rating on the shares.

Earlier in the week, B. Riley also raised the price target on the company to $13 from $8 and kept a ‘Neutral’ rating on the shares.

FCEL Stock: Wall Street Stance

Ailani cited FuelCell’s growing pipeline, which tripled quarter-over-quarter to 4 gigawatts, for the hike, adding that it is "becoming hard to ignore," even though conversion remains the key catalyst. Despite no data center order yet, the analyst said that the management’s confidence in future conversion and expansion added to the sentiment, according to The Fly.

B. Riley said it updated its estimates for the company following its second-quarter results and new commercial proposals.

On Tuesday, Canaccord also upgraded FuelCell to ‘Buy’ from ‘Hold’ and hiked its price target to $30 from $12, indicating an upside potential of nearly 100% from its last close. The firm also backed FuelCell’s potential in the data center market.

Earlier this week, FuelCell Energy reported its second-quarter (Q2) results. Although the company’s loss of $1.45 per share on revenue of $35.6 million missed Wall Street consensus estimates, FuelCell’s CEO Jason Few’s comments lifted sentiment.

The CEO said on an earnings call with investors that the company’s pipeline had increased to 4 gigawatts, representing growth of over 250% from the previous quarter. A few also highlighted the company’s pipeline opportunities in data centers, utilities, distributed power, and industrial markets in the U.S. and abroad. “Potential data center customers make up about 89% of our pipeline,” he said.

FCEL Stock: Retail Stance

On Stocktwits, retail sentiment around FCEL was in the ‘neutral’ territory at the time of writing, amid ‘high’ message volumes.

One user said, “5 months till the end of fiscal year. Before that we get our first data center orders. They’ll have the timeline. The moment we hit that one order, it all will be changing very fast. Fuelcells will be massive in this space, especially high temp cells. Ignore the noise.”

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FCEL stock has nearly doubled in value since the start of the year, driven by optimism about the company’s potential to provide off-grid power solutions to meet AI data center demand.

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