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Shares of FuelCell Energy Inc. FCEL,
fell 7.1% pre-market on Thursday, after JP Morgan analyst Paul Coster turned bearish on the alternative energy company, suggesting the stock should be worth around half of its last closing price . Coster downgraded its rating to an underweight to neutral and set a target share price of $ 10, or 47.8% below Wednesday’s close of $ 19.14. Coster likes the company because he says it has “a strong order book and a stronger balance sheet.” He says FuelCell’s optionality likes the versatility of its molten carbonate technology in industrial applications, and he anticipates a “deal breaker” in the industrial, chemical or energy sector. The problem is, according to Coster, the stock is “richly valued” at current levels. The stock had climbed 80.4% amid a seven-day winning streak to close Wednesday at the highest price since June 2018. Separately, Coster launched another alternative energy company Plug Power Inc. PLUG,
with a neutral note, saying that if the stock is its first choice in the hydrogen space, the price is “fully assessed”. FuelCell stock has soared nearly eight times (up 687.7%) in the past three months through Wednesday, while the S&P 500 SPX,
nailed on 9.2%.
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