FuelCell Energy (FCEL) – Get report it fell sharply on Thursday after the fuel cell equipment maker reported a larger-than-expected loss in the fourth quarter.
The company reported a loss of 8 cents per share, less than a loss of 23 cents a year earlier, but greater than forecasts that indicated a loss of 4 cents. Operating losses decreased from $ 33 million to $ 17.1 million.
Revenue soared 54% in the quarter to $ 17 million from $ 11 million and exceeded Wall Street estimates.
FuelCell’s shares traded at $ 15.50, down 7.52%, on Thursday’s pre-market. But they have soared 629% in the past three months through Wednesday, as investors have gone crazy about clean energy stocks.
The energy equipment maker, like many hydrogen-related stocks, has had an explosive run in recent months amid demand for cleaner fuels. Many analysts believe, however, that the shares went too fast.
FuelCell’s price / sale ratio is at an astronomical level of 50.78 and its price / book value ratio is the same as 56.10, according to Morningstar.
Last week, JP Morgan analyst Paul Coster downgraded the stock from neutral to underweight. Coster has a $ 10 price target at the Danbury, Connecticut energy equipment company.
Shares more than quadrupled in 2020. And in 2021 through Wednesday, January 13, 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 $ 60 price target. Plug was recently traded at $ 59.36, down 5.02%, and took off 284% in the three months through Wednesday.