FuelCell Energy to Standardize 12.5MW Power Blocks; Jefferies Doubles Price Target to $16
FCEL has more than doubled off its 52-week low of $3.78.
Summary
FuelCell Energy announced plans to standardize its utility power blocks at 12.5 MW and will invest $200-$275 million to expand its Torrington, CT factory. This follows a significant price target increase by Jefferies, which more than doubled its target to $16.00 from $7.20. The factory expansion and capital expenditure plan were previously reported in news on June 9th, following the company's weak Q2 results and a universal shelf registration filing on June 8th. The standardization of power blocks is a new strategic detail. This substantial investment aims to accelerate production and deployment, and the analyst's dramatically raised price target suggests strong confidence in these strategic operational moves despite recent financial challenges.
At the time of this announcement, FCEL was trading at $15.79 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $1.1B. The 52-week trading range was $3.78 to $27.69. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.