Amit Dayal, an analyst from H.C. Wainwright, maintained the Buy rating on Fuel Tech (FTEK – Research Report). The associated price target remains the same with $4.00.
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Amit Dayal has given his Buy rating due to a combination of factors including Fuel Tech’s strong financial performance and strategic positioning. The company’s revenues have shown significant growth, particularly in the FUEL CHEM segment, which saw a 93% increase year-over-year. Despite a net loss in the recent quarter, the company maintains a strong cash position with no debt, which provides financial stability and reduces dilution risk.
Additionally, the growth in the APC backlog and potential new contracts in the data center market are seen as positive indicators for future revenue increases. The company’s ability to maintain steady gross margins amidst rising revenues further supports this positive outlook. Moreover, the demand for environmentally conscious power generation solutions provides a favorable market environment for Fuel Tech’s offerings. These factors collectively suggest that the stock is undervalued, especially considering it is trading below cash levels, making it an attractive investment opportunity.
According to TipRanks, Dayal is an analyst with an average return of -18.7% and a 28.28% success rate. Dayal covers the Industrials sector, focusing on stocks such as Plug Power, Joby Aviation, and Broadwind Energy.