Fuelcell Energy Stock (FCEL) Price Forecast For The Next 12 Months
Based on 7 Wall Street analysts who issued a 12-month price estimates for Fuelcell Energy, the average price target is $5.13, with a high prediction of $6.00 and a low prediction of $4.00. The average price estimate reflects a decrease of -17.79% from the most recent price of $6.24.
Fuelcell Energy Inc. has a consensus of 11 surveyed analysts that this rating had remained unchanged since January when the retention rating remained flat.
FuelCell Energy, Inc. (NASDAQ: FCEL) is a stationary fuel cell power plant company to produces distributed baseload power, which is operated, manufactured, sold, installed, and maintained along with its subdivisions. According to analysts, it is one of the best stocks to buy now.
Why Fcel’s Stock Forecast Is Optimistic
FCEL’s stock forecast is optimistic because, the company is doing well despite its first-quarter results. FCEL has been in a strong position since the beginning of the year. They maintained their high-quality standards, which contributed to their strong financial performance.
Secondly, FCEL stock, according to analysts, may rise due to their prospects. They are one of the most promising companies in the industry, and their growth potential is fascinating and has a lot to offer investors.
FuelCell Energy Inc. owns more than 10% of the shares of Electrical Equipment and Parts. FCEL’s short-term technical score is 8. FuelCell Energy Inc.’s stock price. It rose 18.18% last month to $6.07, the highest level since March 2.
The stock fluctuated from $5.44 to $7.33 during this period. The consensus opinion among analysts covering FCEL is to sell the stock. Analysts predict the stock has an average value of $5.46.
FuelCell Energy Inc.’s long-term technical rating Is 40, and it underperformed 60% over the last 200 trading days. FCEL occupies the 121st position among the participations in Electrical Equipment and Parts and is above 48% of the other stock.
FuelCell Energy Inc’s profitability results will be published on June 8, 2022. According to its most recent financial report, diluted earnings per share (EPS) was $-0.28. However, the company has yet to disclose when it will pay its dividends.
FCEL’s Stock Forecast is linked to the Groton Subsea Base and Toyota projects.
FCEL’s Stock Forecast is linked to the Groton Subsea Base and Toyota projects.FCEL is a leading provider of energy storage solutions. The company has developed a new energy storage technology that uses an undersea foundation to store energy. The project is related to FCEL’s efforts to build a subsea power plant in Groton.
The Toyota project is also essential, as it will significantly impact FCEL’s business. FCEL is expecting this project to result in increased demand for its services, which will, in turn, lead to increased profits.
The Exxon Mobil division’s joint carbon capture solutions agreement reached its first technical milestone after the quarter. However, due to FuelCell Energy’s late payment, Exxon Mobil Rotterdam agreed to impose a $5 million discount on any future equipment purchases from Exxon Mobil or make a $5 million payment to the Rotterdam refinery.
Two new projects were launched during the quarter, resulting in an industry record revenue of $7.5 million. However, the company’s latest quarterly report on Form 10-Q reveals that issues with the highly publicized Long Beach Toyota Tri-Generation Project have impacted margin performance.
“Renewable Natural Gas (GRN)” did not arrive in time for the project. That had a significant effect on the financial viability of the project. Because of this, Toyota will have to provide a new deadline of July 30 for the project to enter commercial operation. Toyota’s financial and operating results could be adversely affected if the deadline is not extended.
Management predicted in the conference call that the project would be ready next year, another three years after the original deadline. However, according to 10-Q, the company could not secure long-term gas supply contracts for two other projects.
The Groton Subsea Base also experienced delays that could cause the company to miss the May 15 extended deadline. The 7.4 MW platform, located at the U.S. Navy Subsea Base, Groton, Connecticut, was mechanically completed in July 2020.
In addition, an interconnection contract was signed, and the commissioning process began on the “Groton Project.” Data from the fuel cell platform at the project site showed operational parameters that suggested the company should position itself in FuelCell Energy’s Series B preferred stock (OTCPK: FCELB).
Fuel’s Q1/FY2022 results were ahead of forecasts.
FuelCell Energy’s fiscal 2022 first-quarter earnings report released on Thursday (March 10) beat all consensus. Due to the sale of six fuel cell modules to POSCO.
More than $102 million will be spent on 34 fuel cell replacement modules purchased by POSCO Energy. Despite this, gross product margins fell below 20% when certain production irregularities and spoiling expenses were considered.
The first quarter’s $63.6 million in negative free cash flow was a record. Due to rising operational and asset expenses, this was the case. Aside from that, the agreement with POSCO Energy resulted in legal costs of $10 million for outside counsel.
After the quarter, the firm had $377 million in unrestricted cash. In addition, the $500 million “open market sale with Jefferies LLC & Barclays Capital” still has $122.8 million available to the firm.
FuelCell’s long-term strategy is to capitalize on the growing attention to hydrogen generation and decarbonized electricity. The company uses solid oxide and carbonate fuel cell technology. In a recent research note, Osborne stated that “management, following the POSCO deal, was optimistic about the Asian market and hopeful about the potential for carbon capture.”
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