FuelCell Energy Seen Benefiting From Fit Energy, Siemens Deals, UBS Says in Upgrade

MT Newswires Live07-15 01:10

FuelCell Energy (FCEL) faces "meaningful" sales upside and a share re-rating as its Fit Energy USA agreement and Siemens collaboration drive growth, UBS Securities said Tuesday in a report.

UBS said the initial 30-megawatt deployment under the Fit Energy deal is a "validation phase" that may lead to the remaining 350 MW being awarded. The Siemens partnership should make FuelCell's offering "more competitive" and help it capitalize on a "void" emerging in the medium-scale power market as larger rivals pursue gigawatt-scale data center projects, the report said.

"Consistent execution and customer adoption could drive meaningful revenue upside," UBS said.

UBS lifted its rating on FuelCell stock to buy from neutral and raised its price target to $27 from $22.

Price: 21.07, Change: +1.99, Percent Change: +10.41

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