Shares of FuelCell Energy Inc. FCEL,
it sank 7.1% in premarket trading on Thursday after JP Morgan analyst Paul Coster turned bearish at the alternative energy company, suggesting the shares should be worth about half of their last closing price. Coster downgraded its rating to underweight from neutral and set a target price of $ 10, 47.8% below Wednesday’s close of $ 19.14. Coster likes the company, saying he has a “strong backlog and a strengthened balance sheet.” According to him, the optionality of FuelCell likes in the versatility of his technology of carbonate fused in industrial applications, and foresees a “contract of rupture” in the industrial sector, chemical or energetic. The problem is that Coster said he believes the shares are “highly valued” at current levels. Shares had skyrocketed by 80.4% amid a seven-day winning streak to close on Wednesday at the highest price since June 2018. Separately, Coster founded his alternative energy partner Plug Power Inc.
with a neutral rating, saying that while stock is your best option in the hydrogen space, the price is “totally valued”. Shares of FuelCell have skyrocketed almost eight times (687.7% more) over the past three months to Wednesday, while the S&P 500 SPX
has attacked 9.2%.