FuelCell Energy (FCEL) – Get the report fell sharply on Thursday after fuel cell power equipment maker reported a wider-than-expected loss in the fourth quarter.
The company reported a loss of 8 cents per share, narrower than the loss of 23 cents the previous year, but broader than forecasts calling for a loss of 4 cents. Operating losses were reduced to $ 17.1 million, from $ 33 million.
Revenue soared 54% in the quarter, from $ 11 million to $ 17 million and surpassing Wall Street estimates.
Shares of FuelCell traded at $ 15.50 on Thursday, up 7.52%. But they soared 629% over the past three months through Wednesday as investors have lost the value of clean energy stocks.
The electrical equipment maker, like many hydrogen-linked stocks, has had a blast in recent months amid demand for cleaner fuels. Many analysts believe, however, that the actions have worked too fast.
FuelCell’s price-to-sales ratio stands at an astronomical level of 50.78 and its book-to-book ratio is 56.10, according to Morningstar.
Last week, JP Morgan analyst Paul Coster downgraded shares to neutral underweight. Coster has a target price of $ 10 at Danbury, Connecticut Electrical Equipment Company.
Shares quadrupled in 2020. And in 2021 through Wednesday, January 13, it increased by 71%.
“We think stocks are highly valued here,” Coster said.
On the same note, Coster initiated coverage of the manufacturer of Plug Power even hydrogen fuel cells (PLUG) – Get the report with a retention rating and a target price of $ 60. Plug was recently trading at $ 59.36, down 5.02% and has been up 284% over the three months to Wednesday.