FuelCell Energy +3% AH as Cowen upgrades

|About: FuelCell Energy, Inc. (FCEL)|By:, SA News Editor

FuelCell Energy (NASDAQ:FCEL+3.1% AH after shares are upgraded to Outperform from Market Perform with a $3 price target at Cowen.

The analysts believe FCEL has made strong progress in reducing its fuel cell technology and manufacturing costs; the unsubsidized cost of energy from FCEL’s typical 2.8 MW plant is now down to ~$0.13/kWh, and the levelized cost drops to $0.09-$0.11/kWh when including benefits from Investment Tax Credit and state-level incentives, "increasingly attractive relative to several states’ baseload pricing, and able to compete with intermittent renewable sources."

With continued cost improvements and ramping production levels, Cowen thinks FCEL "is well on its way to becoming EBITDA positive by mid-FY 2015 at the latest."