On Friday, TD Cowen made a significant adjustment to the price target for FuelCell Energy (NASDAQ:FCEL), increasing it to $12.00 from the previous $2.00. The firm has maintained a Hold rating on the stock. Currently trading at $10.29, InvestingPro analysis suggests the stock is undervalued. The adjustment follows FuelCell Energy's announcement of solid fourth-quarter results for the fiscal year 2024.
FuelCell Energy has made notable progress, having shipped six out of 42 modules to GGE during the last quarter. This development is part of the company's ongoing efforts to enhance its product offerings and market reach. While the company's solid oxide platform is scheduled for shipment in early 2025, InvestingPro data shows revenue declined by 39% in the last twelve months. The platform shipment is expected to be a key event for the company, with 15+ additional ProTips available for subscribers.
A successful implementation at an Idaho nuclear facility has been highlighted as an important milestone for FuelCell Energy. The firm's analyst pointed out that this achievement is significant for the stock and is likely to improve its bankability, which refers to the likelihood that a company or project will be able to secure financing.
Additionally, advancements in FuelCell Energy's molten carbonate fuel cell technology have been recognized. The technology is being developed to enable carbon dioxide recovery for food safe applications, indicating a potential expansion into new markets and applications for the company's products.
The revised price target of $12.00 is based on a valuation metric of 1x EV/Sales multiple on the company's projected revenue for the year 2026. Trading at just 0.31 times book value, with a current ratio of 6.91, the company maintains strong liquidity despite challenging market conditions. This suggests that the firm's analyst sees the company's sales as a critical factor in determining the stock's value.
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