FuelCell Energy (NASDAQ: FCEL) has seen an incredible amount of growth on Wallstreet this year alone. The stock has gained 63% in the past month of trading. FCEL, alongside its competitor PLUG Power have gained investor confidence partly due to the congressional passage of an alternative fuels tax credit through the Biden administration bent towards renewable energy. However, analysts price targets and ratings do hold some weight for the bears as the general consensus is a Hold. This article will breakdown everything you need to know regarding FuelCells stock forecast in 2022 and beyond.
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What are analysts forecasting for FCEL stock in 2022?
Firstly, the general consensus from analysts on the stock has a mean downtrend of 50.7% according to the current trading price. Among four notable Wallstreet analysts, three have listed hold ratings and one sell rating, these include:
- 1/14/21 JPMorgan Chase & Co. – Held the 12-month price target at $10.00, giving a downtrend of -62%. JP Morgan has rated the stock as underweight with a sell rating, having a medium impact on the share price.
- 1/21/21 Canaccord Genuity – Analyst Jed Dorsheimer boosted the 12-month price target from $8.50 to $15.00, decreasing the downside from -50.84% to -13.24%. The rating was set as a hold and was noted that the move was a valuation call. This price target has had a high impact on the share price
- 1/21/21 Jefferies Financial Group – Analyst Laurence Alexander boosted their price target from $11.00 to $15.00, resulting in an increase of 36.36% from the original price target. The stock is still set to have a down trend of -43.2% and has been rated at a hold.
- 1/21/21 Cowen & Company – Analyst Jeffrey Osborne boosted their share price from $6.50 to $15.50 for an increase of 138.46%. The stock has been set at a hold, matching the consensus of other analysts.
FuelCell’s financial performance in 2020
Firstly, FuelCell Energy had undertaken a large debt via a $200 million corporate loan with Orion Energy Partners in 2019. The loan was to enable future growth and funding of outstanding dividends/loans. However, as of December 2020 FCEL announced that it had fully paid the debt of $87 Million to Orion. The company noted revenues increased to $17.0 million in Q4 2020, a 54% increase from Q4 2019. Additionally, revenues for 2020 increased to $70.9 million, “primarily attributable to expanded Generation and Advanced Technologies activities.”
“One year ago we launched our Powerhouse business strategy, with the first pillar of the strategy – Transform – containing the key deliverable of building a solid financial foundation… We are firmly focused on delivering revenue growth as we strive to capture the significant market opportunities that we believe lay before us with our proprietary technologies.”said Mr. Jason Few, President and CEO
Revenue forecasts for FuelCell in 2021 and beyond
The revenue forecast for FCEL in 2021 is estimated to be $89.72M according to 6 Wallstreet analysts, which suggests an increase of $18.85M (26.60%) from 2020. Furthermore, analysts predict on average the revenue to reach $122 Million in 2022. In addition, recent performance within the 2020 Q4 reports show that the EPS has declined to -0.09. However, analysts predict the EPS for 2021 to be -$0.18 per share indicating an improvement of 57.14% from last year.
We remind our viewers that this article is not financial advice but rather investment commentary from extensive research.
In conclusion, the 12 month forecasts from analysts remain conservative with a general consensus to Hold. However, we can continue to see an upward trend in valuation due to price boosts in 2021. In addition, the revenue forecasts for 2021/22 according to analysts look to provide further the company solid growth as the company continues to expand.
Written by Zac Lorschy at Youth Investment Group.
Edited by Tyger Fitzpatrick at Youth Investment Group.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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