In a report released yesterday, Dushyant Ailani from Jefferies maintained a Hold rating on Fuelcell Energy, with a price target of $7.80.
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Dushyant Ailani has given his Hold rating due to a combination of factors influencing Fuelcell Energy’s current position and future prospects. The company’s data center pipeline is showing potential, particularly with a memorandum of understanding for a significant project in South Korea, but these developments are still in the early stages. While the management is optimistic about capturing off-grid data center demand through strategic alliances, concrete deals have yet to be announced, which introduces a level of uncertainty.
Moreover, Fuelcell Energy is making progress in reducing operating expenses, with notable declines in administrative and R&D costs. However, the company is still operating below its target production capacity, which affects its profitability outlook. Although there was an improvement in gross margins and EBITDA compared to previous periods, the financial metrics remain below consensus expectations, suggesting a cautious approach is warranted until more consistent performance is demonstrated.
According to TipRanks, Ailani is an analyst with an average return of -4.3% and a 26.32% success rate. Ailani covers the Industrials sector, focusing on stocks such as Bloom Energy, Ballard Power Systems, and Fuelcell Energy.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $7.50 price target.