FCEL Stock Is Surging Today – This Analyst Sees A Further 41% Upside On Multiple Growth Catalysts

• The firm said the FuelCell can "fill the void" created by rivals, who are scaling up to pursue significantly larger orders.
• In late June, Fit Energy signed an agreement with the company for an immediate deposit of 30 MW of power that will be supplied to data center customers.
• Of the eight analysts covering the stock, three rate it a ‘Buy’; three ‘Hold ’; and two ‘Sell’ or lower.

Shares of FuelCell Energy (FCEL) surged on Tuesday after UBS upgraded the stock to ‘Buy’ from ‘Neutral,’ citing “multiple positive drivers.”

At the time of writing, FCEL stock was up nearly 12%.

UBS’ Takeaway On FCEL

Analyst Manav Gupta cheered the company’s recent agreements, notably the pact with Fit Energy to supply up to 380 megawatts (MW) of power and the collaboration with Siemens to accelerate the growth of fuel cell-based products.

The firm said the company can "fill the void" created by rivals, who are scaling up to pursue significantly larger orders, TheFly reported. The analyst also recommended buying FuelCell shares ahead of any capacity expansion with Fit Energy, as that news could serve as a "meaningful catalyst and drive a re-rating of the shares."

FCEL has a new price target of $27, up from $22, implying more than 41% upside potential as of the stock’s close on Monday. Of the eight analysts covering the stock, three rate it a ‘Buy’; three ‘Hold ’; and two ‘Sell’ or lower.

Recapping FCEL’s Fit Energy Agreement

In late June, Fit Energy signed an agreement with the company for an immediate deposit of 30 MW of power that will be supplied to data center customers. FuelCell CEO Jason Few said at the time that the agreement aligned with the company’s strategy to scale its operations to 500 MW and serve a broad range of customers.

Notably, the company issued Fit Energy warrants that are exercisable only if it meets deployment milestones totaling up to 380 MW.

What Do Retail Traders Think About FCEL?

On Stocktwits, retail sentiment on FCEL remained in ‘neutral’ territory over the last 24 hours.

FCEL stock has more than quadrupled over the last 12 months, outperforming the S&P 500.

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