FuelCell Energy Inc (NASDAQ:FCEL) investors are heading for the hills after the fuel cell maker disclosed that its Beacon Falls Energy Park project was not selected for contract negotiations under The New England Clean Energy Request for Proposals (RFP).
FuelCell shares reacted to the news, falling nearly 30% to $3.67 in early trading Tuesday.
Company management has consulted with the project developer as well as the land owner, O&G Industries, and all parties expect to pursue alternate paths to continue to develop and construct the project, based on its merits and favorable economics. The Company will provide updates on the Project’s development in the future.
Independently, the Company has not received any notification regarding the status of any of the previously disclosed four bids, totaling in excess of 50 megawatts, submitted to the State of Connecticut 2 – 20 megawatt RFP that is being administered by the Connecticut Department of Energy and Environmental Protection (DEEP). According to DEEP disclosures related to that RFP, decisions are expected by the end of January 2017. (Original Source)
On the ratings front, Fuelcell has been the subject of a number of recent research reports. In a report released today, Roth Capital analyst Craig Irwin downgraded FCEL to Hold, with a price target of $4.00, which represents a slight upside potential from current levels. Separately, on October 11, FBR’s Carter Driscoll reiterated a Buy rating on the stock and has a price target of $9.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Craig Irwin and Carter Driscoll have a total average loss of -3.7% and -18.2% respectively. Irwin has a success rate of 35% and is ranked #3721 out of 4190 analysts, while Driscoll has a success rate of 19% and is ranked #4035.
FuelCell Energy, Inc. designs, manufactures, sells, installs and services stationary fuel cell power plants for distributed power generation. It operates through the Fuel Cell Power Plant Production and Research segment. It offers products for the Ultra-Clean Power and Renewable Power markets.