Analyst Amit Dayal from H.C. Wainwright maintained a Buy rating on Fuel Tech and keeping the price target at $4.00.
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Amit Dayal has given his Buy rating due to a combination of factors that suggest potential growth for Fuel Tech. Despite a decline in revenue for the second quarter of 2025, the company maintains a strong financial position with $30.9 million in cash and no debt. The management’s optimistic outlook is supported by the anticipated rise in energy demand driven by AI, data centers, and the crypto industry, with over $100 million in bids for related projects.
Fuel Tech’s offerings, particularly in NOx control for data centers, are expected to be a significant revenue driver, with multiple units needed per site. The steady demand for base load power generation globally provides a favorable environment for the company’s products. Additionally, the company’s strong gross margins and stable FUEL CHEM revenues contribute to its attractive positioning. With projected revenue growth and minimal dilution risk, the stock is seen as having significant upside potential.
Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FTEK in relation to earlier this year.