FuelCell Energy (FCEL) is powering higher after the stock was given a Buy rating at Stifel this morning.
Stifel's Sven Eenmaa explains why he feels optimistic about FuelCell Energy's chances:
"We believe that, following several years of investment and effort, the [FuelCell Energy] has made strong progress in reducing its fuel cell technology and manufacturing costs, and is successfully transitioning its stationary fuel cell power plant solution from the realm of R&D to an economically deployable renewable energy technology with a potential to become a part of the baseload generation mix."
Eenmaa says Fuel Cell Energy could hit $2.90 in the next 12 months.
FuelCell Energy has gained 7.6% to $22.40 at 12:12 p.m. and the positive energy has translated into other fuel cell stocks as well, including Ballard Power Systems (BLDP) and Plug Power (PLUG).
Ballard Power Systems has gained 11% to $3.62, while Plug Power is up 7.8% at $4.31.
UPDATE: A reader notes that Stifel's new report is actually a big change for the company. On March 11, Stifel's Jeffrey Osborne raised his price target on Buy-rated FuelCell Energy to $4.10, something I should have remembered since I blogged it here. Eenmaa's price target of $2.90, then, is actually 29% below the firms previous target.
By: Ben Levisohn