“FCEL posted solid revenue but disappointing GM on product and generation revenue. We expect both to recover as revenue grows, especially as the company finishes liquidating high cost inventory. We continue to believe FCEL has a clear path to cash flow breakeven as it grows product sales to Korea and expands its owned project portfolio. We are encouraged by Korean customer signals, project wins in the US, and progress on securing project financing. We would not be surprised to see the company to be able to announce new orders in Korea over the coming months as it moves forward building the US portfolio. We remain constructive on the shares as we believe concerns about sustainable growth and cash burn are overblown.”
According to TipRanks.com, Rusch is a 5-star analyst with an average return of 15.0% and a 49.6% success rate. Rusch covers the Industrial Goods sector, focusing on stocks such as Capstone Turbine Corp, Amer Superconductor, and Canadian Solar Inc.
Fuelcell Energy has an analyst consensus of Moderate Buy, with a price target consensus of $4.
Based on Fuelcell Energy’s latest earnings release for the quarter ending January 31, the company reported a quarterly GAAP net loss of $4.18 million. In comparison, last year the company had a GAAP net loss of $13.24 million.
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FuelCell Energy, Inc. designs, manufactures, sells, installs and services stationary fuel cell power plants for distributed power generation. It offers renewable power markets. Its services also include engineering, procurement, and installation; and training.