Shares of FuelCell Energy Inc. FCEL,
fell 7.1% in premarket trading on Thursday after JP Morgan analyst Paul Coster gave up the alternative energy company, suggesting the stock should be worth about half of its last closing price. Coster downgraded its underweight rating from neutral and set a $ 10 share price target, which is 47.8% below Wednesday’s close of $ 19.14. Coster likes the company because he says it has a “strong delay and a consolidated balance sheet.” He says he likes the FuelCell option in the versatility of its molten carbonate technology in industrial applications and anticipates a “break contract” in the industrial, chemical or energy sector. The problem is, Coster said he believes the stock is “richly valued” at current levels. Shares rose 80.4% amid a seven-day winning streak to close on Wednesday at the highest price in June 2018. Separately, Coster launched an alternative energy company Plug Power Inc. PLUG,
with a neutral rating, saying that although the stock is the best choice in the hydrogen space, the price is “fully assessed”. FuelCell stock has risen nearly eightfold (up 687.7%) in the past three months to Wednesday, while the S&P 500 SPX
reached 9.2%.