FuelCell: Catalysts Still a While Away

It’s no fun being a FuelCell (FCEL) shareholder right now. Since peaking at $29.44 in early February, shares have retreated by 67%. Looking ahead, B. Riley analyst Christopher Souther believes Read More... The post FuelCell: Catalysts Still a While Away appeared first on TipRanks Financial Blog.

FuelCell: Catalysts Still a While Away

It’s no fun being a FuelCell () shareholder right now. Since peaking at $29.44 in early February, shares have retreated by 67%. Looking ahead, B. Riley analyst Christopher Souther believes any catalysts to alter the stock’s trajectory are still in the distance.

In F2Q21, FuelCell generated revenue of $14 million, reflecting a 25.9% year-over-year decline and missing the estimates by $4.91 million. The soft top-line figure was due to the company not generating any module exchanges in the quarter. The company disappointed on the bottom-line too, as GAAP EPS of -$0.06 also came in $0.01 below the estimates.

Additionally, the company’s backlog has dropped from the same period a year ago. Compared to the $1.34 billion reported in the same period last year, FuelCell’s backlog stood at $1.32 billion at the end of April, although Southern does note the backlog was up 4% quarter-over-quarter.

Souther also highlights the positive noises made by management around “the pipeline opportunities expanding for the platform.” In both Europe and Asia, FuelCell has been laying the groundwork on “building out the product sale pipeline.” The company is also confident FY21 will see the addition of the fuel cell projects in San Bernardino, California and Groton, Connecticut.

Since “refocusing its efforts,” FuelCell has yet to add any product sales to the backlog, which going forward is a factor that should be taken into consideration.

“We see announcements later this year as key to hitting 2022 estimates or potential upside,” 5-star analyst wrote. “Legislation that recently passed in Connecticut for 30MW of fuel cell projects with utilities likely provides continued positive momentum for the company in its home state, with RFPs (request for proposals) likely coming as early as this summer and potential wins by year-end, in our view.”

And while Souther sees “major catalysts around the commercialization of carbon capture opportunities and the solid oxide platform as 2022+ stories,” those are still a way off.

For now, the analyst rates FCEL stock a Neutral (i.e. Hold), while the price target gets a slight trim – reduced from $11 to $10. As such, Souther expects shares to stay range-bound for the foreseeable future. (To watch Souther’s track record, )

Overall, there are currently no Buy recommendations for FCEL and its Moderate Sell consensus rating is based on 5 Holds and 2 Sells. The shares are priced at $9.68 and their $9 average price target suggests a 7% downside from current levels. (See FCEL stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post FuelCell: Catalysts Still a While Away appeared first on TipRanks Financial Blog.

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Novavax’s COVID-19 Vaccine Is Right on Target, Says Analyst

One of the early frontrunners in the race to get a Covid-19 vaccine to market, Novavax (NVAX) has encountered delays in getting its offering out to the public. But at Read More... The post Novavax’s COVID-19 Vaccine Is Right on Target, Says Analyst appeared first on TipRanks Financial Blog.

Novavax’s COVID-19 Vaccine Is Right on Target, Says Analyst

One of the early frontrunners in the race to get a Covid-19 vaccine to market, Novavax () has encountered delays in getting its offering out to the public. But at last the results are in from the U.S/Mexican Phase 3 trial for NVX-CoV2373, and they did not disappoint.

The vaccine was tested on almost 30,000 patients and displayed an overall efficacy rate of 90.4%, while also 100% effective in providing protection against moderate and severe disease.

Following strong sets of data from the U.K. and South African late-stage studies, B. Riley analyst Mayank Mamtani says the latest results could “meaningfully assuage investors' concerns.”

Since Novavax noted a 93.2% vaccine efficacy rate in 54 cases for which there was available data, Mamtani thinks investors were worried about the circulating variants of concern (VOC) and variants of interest (VOI) that were “theoretically perceived” to have negatively impacted the vaccine’s effectiveness. Those worries can now be laid to rest.

The vaccine maker intends to file for regulatory authorizations in Q3 and remains on target to hit a manufacturing capacity of 100 million doses per month by the end of the third quarter. By the end of 4Q21, that figure should increase to 150 million doses per month.

But now that Covid is on the backfoot and there are other just as effective solutions already available, is it too late for Novavax to make its mark? Not at all, say Mamtani.

“We believe an extremely compelling case could now be made from three independent large-scale, randomized, placebo-controlled trials in a total of ~50k subjects of '2373's highly potent, safe and well-tolerated product profile to serve as meaningfully disruptive to the fast-evolving C-19 vaccine global marketplace, constituting of the booster market in western economies increasingly driven by consumer choice, and a trusted, reliable vaccine option best suited for lower-middle income countries (LIMC) increasingly being adversely impacted by troublesome VOC/VOI,” the 5-star analyst explained.

To this end, Mamtani reiterates a Buy rating on NVAX shares along with a $286 price target. The analyst, therefore, expects shares to appreciate ~38% in the year ahead. (To watch Mamtani’s track record, )

The rest of the Street has a more conservative outlook; according to the $238.60 average price target, the forecast is for 12-month upside of 15%. Overall, based on 4 Buys and 2 Holds, the stock has a Moderate Buy consensus rating. (See NVAX stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Novavax’s COVID-19 Vaccine Is Right on Target, Says Analyst appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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