FuelCell Energy Inc. FCEL shares,
sank 7.1% in pre-market trading on Thursday after JP Morgan analyst Paul Coster declined on the alternative energy company, suggesting that the stock should be worth about half of its last trading price. closure. Coster reduced its rating to neutral underweight and set a $ 10 share price target, which is 47.8% below Wednesday’s close of $ 19.14. Coster likes the company, as he says it has a “strong order book and a strengthened balance sheet”. He says that FuelCell’s optionality likes the versatility of its molten carbonate technology in industrial applications, and he is anticipating a “rupture contract” in the industrial, chemical or energy sector. The problem is that Coster said he thinks the stock is “richly valued” at current levels. Shares rose 80.4% amid a seven-day winning streak, closing on Wednesday at the highest price since June 2018. Separately, Coster founded alternative energy company Plug Power Inc. PLUG,
with a neutral rating, saying that although the stock is your primary choice in the hydrogen segment, the price is “fully valued”. FuelCell’s shares have skyrocketed nearly eight times (up 687.7%) in the past three months through Wednesday, while the S&P 500 SPX,
increased 9.2%.
