/FuelCell Drops as J.P. Morgan Cuts Stock to Sell on Valuation – TheStreet

FuelCell Drops as J.P. Morgan Cuts Stock to Sell on Valuation – TheStreet

Shares of power equipment maker FuelCell Energy  (FCEL) – Get Report dropped Thursday after JPMorgan analyst Paul Coster downgraded the stock to the equivalent of sell.

Coster has a $10 price target on the Danbury, Conn., company. FuelCell shares at last check dropped 11% to $17.01. 

The stock had more than quadrupled in 2020. And in 2021 through Wednesday it had risen 71%. “We think the stock is richly valued here,” Coster said. 

In the same note, Coster initiated coverage of peer hydrogen fuel cell maker Plug Power  (PLUG) – Get Report with a hold rating and a $60 price target. 

That also indicates downside: Plug Power recently traded at $65.69, down 5.5%.

J.P Morgan also sees Plug as overvalued since the stock jumped by more than a factor of 10 in 2020 and has doubled this year.

Last week, South Korean conglomerate SK Group said it would invest $1.5 billion in Plug Power, with SK receiving 51.4 million PLUG shares at $29.29 each.

On Tuesday, Plug Power and French carmaker Renault  (RNLSY)  unveiled a joint venture for hydrogen-powered vans in Europe.

The joint venture in 2021 will start commercializing fuel-cell light commercial vehicles in Europe with pilot fleet deployments.

These recent partnerships, Coster said, “give us confidence in the 2024 targets of $1.2 billion sales [and] $250 million in adjusted Ebitda.” 

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