FBR analyst Carter Driscoll is out with a favorable report on shares of FuelCell Energy Inc (NASDAQ:FCEL) following a conversation with CEO Chip Bottone regarding the company’s promising near-term and long-term prospects.
For the analyst, the carbon capture opportunity offers real, vast potential for FCEL as it can be applied to both coal-fired as well as gas-fired power plants, which Driscoll believes, currently “remains overlooked.” As such, Driscoll reiterates an Outperform rating on FCEL with a $9.00 price target, which represents a nearly 72% increase from where the stock is currently trading.
Driscoll notes, “We think FCEL is close to announcing its first site deployment in conjunction with the DOE, which we expect in early C4Q16, and believe it could be a catalyst for the stock. FCEL is also working with Exxon Mobil to further refine the use of its technology for carbon capture at gas-fired plants, and we believe that Exxon Mobil will monitor the first site deployment to better gauge its own deployment time line. While the technology still has to be proven out in the field, the potential market opportunity appears to be very large. In contrast to existing carbon capture technologies, fuel cells are modular, produce net energy, and are less expensive.”
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, analyst Carter Driscoll is ranked #4,001 out of 4,127 analysts. Driscoll has a 19% success rate and faces a loss of 19.5% in his yearly returns. When recommending FCEL, Driscoll loses 11.5% in average profits on the stock.
TipRanks analytics exhibit FCEL as a Strong Buy. 100% of analysts polled in the last 3 months rate a Buy on FCEL. The consensus price target stands at $12.00, marking a 129% upside from where the shares last closed.
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