FuelCell Energy (NASDAQ: FCEL) has seen an incredible amount of growth on Wallstreet. The stock has gained 1084% over the past year 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. Furthermore, alternative energy has been a major trend on Wallstreet, pushing EV and clean energy stocks into new, unseen territories. However, analysts price targets and ratings do hold some weight for the bears as the general consensus of FCEL stock is a Hold. This article will breakdown everything you need to know regarding FuelCells stock forecast in 2022 and beyond.
Table of contents
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:
- 3/5/2021 JPMorgan Chase & Co. – JP Morgan analysts dropped their 12-month price target from $10.00 to $9.00 a share. 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 an upside. 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.
In summary, the price targets give investors one point of data to consider with FCEL stock. The consensus is neutral with majority of recent Price Targets within the current price range FCEL is trading at.
FuelCell’s financial review
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 the annual year of 2020 increased to $70.9 million, “primarily attributable to expanded Generation and Advanced Technologies activities.”
However, in the first recent quarter of 2021 the company missed revenue expectations with Revenue of $14.9 million compared to $16.3 million in Q1 2020. The company attributed the lower revenue due to impacts on service and license agreements and temporary shut downs of project plants. However, in the most recent quarter the business was able to improve their cash position and balance sheet.
During the first quarter, we strengthened our balance sheet by raising capital, paying down debt and executing against our core business backlog,”
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, analysts predict the EPS for 2021 to be -$0.18 per share indicating an improvement of 57.14% from last year.
The catalysts for the strong revenue forecasts include the company “addressing the promising market opportunities in the global energy transition.” The pursuit of this market includes developments in technology to distribute hydrogen, develop long-duration hydrogen energy storage/power generation and carbon capture (process of capturing carbon dioxide to avoid it entering the atmosphere during power generation).
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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