Shares of FuelCell Energy Inc. FCEL,
fell 7.1% in market trading on Thursday after JP Corgan analyst Paul Coster slumped the alternative energy business, suggesting the stock would be worth about half its latest closing price. Coster cut its rating to underweight from neutral and set a share price target of $ 10, which was 47.8% lower than the end of Wednesday of $ 19.14. Coster likes the company because he says he has a ‘strong backlog and a strengthened balance sheet’. He says FuelCell’s option choice holds in the versatility of its molten carbonate technology in industrial applications, and he expects a ‘breakout contract’ in the industrial, chemical or energy sector. The problem is that Coster said he thinks the stock is “richly valued” at the current level. The stock rose 80.4% amid a seven-day victory to close Wednesday at the highest price since June 2018. Separately, Coster has its co-alternative energy venture Plug Power Inc. PLUG begins.
with a neutral rating and said that while the stock is its best choice in the hydrogen space, the price is ‘fully appreciated’. FuelCell’s share has risen almost eightfold over the past three months to Wednesday (687.7% higher), while the S&P 500 SPX,
achieved 9.2%.
