FuelCell Energy Slumps on Wider-Than-Expected Loss
FuelCell Energy (FCEL) - Get Report fell Thursday after the fuel cell power equipment maker reported a wider-than-expected loss in the fourth quarter.
The company reported a loss of 8 cents a share, narrower than a year-earlier loss of 23 cents but wider than forecasts that called for a loss of 4 cents. Operating losses shrank to $17.1 million from $33 million.
Revenue soared 54% in the quarter to $17 million from $11 million and beat Wall Street estimates.
FuelCell shares traded at $16.39, down 2.21%, in trading Thursday. But they skyrocketed 629% over the past three months through Wednesday, as investors have gone gaga over clean energy stocks.
The power-equipment maker, like many hydrogen-linked stocks, has had an explosive run over the past few months amid demand for cleaner fuels. Many analysts believe, however, that the stocks have run too far too fast.
FuelCell’s price-to-sales ratio stands at an astronomical level of 50.78 and its price-to-book ratio the same at 56.10, according to Morningstar.
Just last week, J.P. Morgan analyst Paul Coster downgraded the stock to underweight from neutral. Coster has a $10 price target on the Danbury, Conn., power equipment company.
The stock more than quadrupled in 2020. And in 2021 through Wednesday Jan. 13 it rose 71%.
"We think the stock is richly valued here," Coster said.
In the same note, Coster initiated coverage of peer hydrogen fuel cell maker Plug Power (PLUG) - Get Report with a hold rating and a $60 price target. Plug recently traded at $59.36, down 5.02%, and has taken off 284% over the three months through Wednesday.
