Energy equipment manufacturer shares FuelCell Energy (FCEL) – Get report fell Thursday after JPMorgan analyst Paul Coster downgraded the shares to the equivalent of selling.
Coster has a $ 10 price target at the Danbury, Connecticut company. FuelCell’s shares on the last check were down 11% to $ 17.01.
Shares more than quadrupled in 2020. And from 2021 to Wednesday they rose 71%. “We think that the shares are highly valued here,” said Coster.
On that same note, Coster started covering the hydrogen fuel cell manufacturer Peer Plug Power (PLUG) – Get report with a wait rating and a price target of $ 60.
This also indicates a disadvantage: Plug Power was recently traded at $ 65.69, down 5.5%.
JP Morgan also sees Plug overvalued, as shares jumped more than 10 times in 2020 and doubled this year.
Last week, South Korean conglomerate SK Group said it would invest $ 1.5 billion in Plug Power, with SK receiving 51.4 million shares of PLUG at $ 29.29 each.
On Tuesday, Plug Power and French automaker Renault (RNLSY) revealed a joint venture for hydrogen powered vans in Europe.
The joint venture in 2021 will start selling light commercial vehicles with fuel cells in Europe with the implementation of a pilot fleet.
These recent partnerships, said Coster, “give us confidence in the 2024 sales target of $ 1.2 billion [and] $ 250 million in adjusted Ebitda. ”