FuelCell Energy (FCEL) – Get report fell sharply on Thursday after the fuel cell power equipment manufacturer reported a wider loss than expected in the fourth quarter.
The company reported a loss of 8 cents per share, smaller than a year-ago loss of 23 cents, but wider than forecasts requiring a loss of 4 cents. Operating losses shrank to $ 17.1 million from $ 33 million.
Revenue rose 54% to $ 17 million in the quarter from $ 11 million, beating the Wall Street estimate.
FuelCell shares traded lower at $ 15.50, 7.52% on Thursday. But they soared 629% in the past three months to Wednesday, as investors cost the shares over clean energy.
The power equipment manufacturer, like many hydrogen-coupled supplies, has had an explosive run over the past few months amid the demand for cleaner fuel. However, many analysts believe that the shares have run too much.
FuelCell’s price-to-sales ratio stands at an astronomical level of 50.78 and the price-to-book ratio the same at 56.10, according to Morningstar.
Just last week, JP Morgan analyst Paul Coster downgraded the stock to underweight from neutral. Coster has a $ 10 price target for the Danbury, Conn., Power business.
The share has more than tripled in 2020. And in 2021 to Wednesday 13 January, it has risen by 71%.
“We think the share here is greatly appreciated,” Coster said.
In the same note, Coster started coverage for the manufacturer of Plug Power which is produced by the fuel cell of hydrogen (PLUG) – Get report with a hold rating and a price target of $ 60. Plug recently traded at $ 59.36, down 5.02%, and rose 284% during the three months to Wednesday.