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UBS lifts FuelCell Energy forecast, citing room for FCEL gains
UBS set a $27 price target as FuelCell pushes a behind-the-meter power approach, with data center customers forming about 89% of its proposed 4 gigawatt pipeline reported on June 8.
FuelCell Energy (FCEL) has surged more than 250% over the past year but still trades more than 50% below its 52-week high, and UBS is now arguing the stock’s pullback could be an opportunity. The firm reiterated bullish upside with a $27 price target.
FuelCell’s strategy centers on power systems that run on fuel cells rather than the traditional grid, positioning the technology as a way to support data centers with continuous power for AI workloads. The company said interconnection backlogs, including long utility queue times to add new capacity, can take years, so customers may need faster on-site power options.
On its fiscal second-quarter earnings call on June 8, FuelCell said its pipeline of proposed projects reached 4 gigawatts, more than triple the prior quarter’s total, and that about 89% of the pipeline is tied to data center customers. The company also introduced a standardized 12.5 megawatt power block this year to let customers scale deployments in phases, rather than overbuilding all at once.
Financial results were described as mixed: total revenue was $35.6 million, down about 5% year over year, driven largely by lower service revenue. The article notes the company also posted a net loss for the quarter, but the figure is cut off in the provided text.