FuelCell Energy (FCEL) – Get the report fell sharply on Thursday after the fuel cell equipment maker reported a higher-than-expected loss in the fourth quarter.
The company reported a loss of 8 cents per share, lower than a loss of 23 cents a year earlier, but broader than forecasts that predicted a loss of 4 cents. Operating losses fell to $ 17.1 million from $ 33 million.
Revenue rose 54 percent this quarter to $ 17 million from $ 11 million and exceeded Wall Street estimates.
FuelCell shares traded at $ 15.50 on Thursday, down 7.52%. But they rose 629 percent in the past three months to Wednesday, as investors outperformed clean energy stocks.
The electrical equipment manufacturer, like many hydrogen-related stocks, has exploded in recent months amid demand for cleaner fuels. However, many analysts believe that stocks ran too fast.
FuelCell’s price-to-sales ratio is at an astronomical level of 50.78, and the book-price ratio is also at 56.10, according to Morningstar.
Just last week, JP Morgan analyst Paul Coster reduced the stock to underweight from neutral. Coster has a $ 10 price target for Danbury, Conn.
The stock has quadrupled in 2020. And in 2021 by Wednesday, January 13, it has increased by 71%.
“We think the stock is richly valued here,” Coster said.
In the same note, Coster initiated the coverage of the hydrogen fuel cell manufacturer on the Plug Power market (SNUFF) – Get the report with a retention rating and a target price of $ 60. Plug recently traded at $ 59.36, down 5.02% and out of 284% in the three months to Wednesday.