FuelCell cut to Market Perform at Cowen but strong 2014 potential seen

FuelCell Energy (FCEL -3.6%) is downgraded to Market Perform from Outperform but with a new $2.70 price target, up from $2, at Cowen, which says recently completed fuel cell parks in Connecticut and Korea should open a $12B opportunity, and H1 orders should drive FY 2014 and Q4 revenue and gross margins to EBITDA break-even.

The firm is eyeing a back-half 2014 weighting to shipments, with a higher mix of full power plant projects vs. kit sales helping lift revenue to ~$68M in Q4 vs. $44M in Q1, and lift gross margin to 12% from 4.9%; in addition to volume, production cost improvements include process upgrades such as automated laser welding.

However, fuel cell peers Plug Power (PLUG +18.1%) and Ballard Power (BLDP +8.5%) are bouncing from yesterday's huge losses.

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Comments (15)
  • same123
    , contributor
    Comments (119) | Send Message
    no your not biased there was also an upgrade.


    FuelCell price target raised to $4.10 from $2.30 at Stifel
    Stifel increased its price target on FuelCell as the firm thinks the company's tone about large contracts was encouraging. The firm believes the company is well-positioned to obtain large scale projects in the U.S., and expects it to announce sizable wins in coming months, paving the way to profitability. It keeps a Buy rating on the stock.
    12 Mar 2014, 10:48 AM Reply Like
  • gainbren
    , contributor
    Comments (50) | Send Message
    With all the articles written about fcel no one has valued the posco connection and the massive amount of air pollution in Asia until Cowen with the downgrade.I think that will drive the stock much higher.I bought 1000 @ $1.40 to hold for 10 years.I do not think this company should be looked at short term.
    12 Mar 2014, 11:02 AM Reply Like
  • alan ljl
    , contributor
    Comments (273) | Send Message
    Absolutely. week of Mar 9, 2009 FCEL was trading at $2.61. This period of time was the market's generational low.
    Today FIVE YEARS later it closed at $3.61. A real long term winner!
    Thanks for pointing that out to everyone. In 10 years wow just think where it might be trading. Gosh,wow,whoppie.
    Thankyou so much for the advise.
    12 Mar 2014, 10:16 PM Reply Like
  • Bear Bait
    , contributor
    Comments (947) | Send Message
    Speaking of the fuel cell type stocks getting hammered yesterday. I just read that this Left guy is a short seller. I have to wonder just how much money he made off of his well timed remarks!
    12 Mar 2014, 11:03 AM Reply Like
  • Bob the Bear
    , contributor
    Comments (55) | Send Message
    Probably nothing. I believe that he shorted much earlier. Timing is everything.
    12 Mar 2014, 04:02 PM Reply Like
  • vpg999
    , contributor
    Comments (142) | Send Message
    Cowen analyst should simply resign, no reason for him to even be covering the stock, he was right on his price target for a flash this morning, cost everyone he talks to money.
    12 Mar 2014, 11:14 AM Reply Like
  • atrickpay
    , contributor
    Comments (504) | Send Message
    good point,,biased info here, missing the stifel nicolaus upgrade: http://bit.ly/1cTeiqp
    12 Mar 2014, 11:33 AM Reply Like
  • McHuckleberry
    , contributor
    Comment (1) | Send Message
    Being fairly new at this, advice and insight is always appreciated. Right now I'm curious as to why FuelCell hasn't generated the interest that Plug has even though it is apparently the provider of the fuel cells for the much hyped Plug Power.
    Even today, Plug is rising while FuelCell does very little.
    Well, I guess I've answered my own question; that is, hype seems to go a long way in the market while solid fundamentals take a trip south.
    12 Mar 2014, 12:14 PM Reply Like
  • COBeeMan
    , contributor
    Comments (2979) | Send Message
    I thought BLDP provided the fuel cells used by Plug?
    12 Mar 2014, 12:35 PM Reply Like
  • LYogi
    , contributor
    Comments (3220) | Send Message
    they do
    12 Mar 2014, 01:03 PM Reply Like
  • Minister of Finance
    , contributor
    Comment (1) | Send Message
    BLDP provides PLUG with the fuel cells not FCEL
    12 Mar 2014, 01:05 PM Reply Like
  • LYogi
    , contributor
    Comments (3220) | Send Message
    yes basically BLDP provides everyone with everything in the FC industry.


    They are the kings.


    For they hold the IP.
    12 Mar 2014, 01:37 PM Reply Like
  • Bob the Bear
    , contributor
    Comments (55) | Send Message
    Not quite. FCEL makes an entirely different type fuel cell (molten
    12 Mar 2014, 04:06 PM Reply Like
  • Blue22
    , contributor
    Comments (449) | Send Message
    BLDP makes the fuel stacks for PLUG. Power Plug has proven technology with FedEx and other huge tests around the World and is in high demand for product as well as international partnerships in various international markets. WalMart signed for huge order.


    The PLUG future in forklift power alone is a gigantic international market, which is lining up to purchase product and partner with PLUG and BLDP proven solutions. LOOK TO THE CUSTOMER BASE AND DEMAND NOT TO THE MONEY-SUCKING ANALYSTS WHO DON'T CARE IF FUEL CELLS FAIL OR NOT!
    12 Mar 2014, 02:17 PM Reply Like
  • COBeeMan
    , contributor
    Comments (2979) | Send Message
    Personally, I think a financial analyst is only part of a stock analyst. Too many financial analysts think they are also stock analysts but fail to consider all of the other variables that make a stock move.
    12 Mar 2014, 03:23 PM Reply Like
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