FuelCell energy (FCEL) – Request report fell sharply Thursday after the fuel cell equipment manufacturer reported a larger-than-expected loss in the fourth quarter.
The company reported a loss of 8 cents a share, less than a year-earlier loss of 23 cents, but wider than predicted a loss of 4 cents was required. Operating losses decreased from $ 33 million to $ 17.1 million.
Sales were up 54% in the quarter to $ 17 million from $ 11 million, exceeding Wall Street estimates.
FuelCell stock traded at $ 15.50, down 7.52%, during Thursday’s premarket trading. But they shot up 629% in the last three months through Wednesday, as investors have gone mad about clean energy stocks.
The electrical equipment manufacturer, like many hydrogen-related stocks, has experienced an explosive attack in recent months due to the demand for cleaner fuels. However, many analysts believe that stocks have been running too fast.
FuelCell’s price-to-sales ratio stands at an astronomical level of 50.78, according to Morningstar, and its price-to-book ratio is the same at 56.10.
Last week, JP Morgan analyst Paul Coster lowered the stock from neutral to underweight. Coster has a target price of $ 10 for the Danbury, Connecticut, electrical equipment company.
The share has more than quadrupled in 2020. And in 2021 through Wednesday, January 13, it is up 71%.
“We think the stock here is valued liberally,” said Coster.
In the same note, Coster started coverage of Plug Power, a manufacturer of comparable hydrogen fuel cells (PLUG) – Request report with a hold rating and a price target of $ 60. Plug recently traded at $ 59.36, down 5.02%, and is up 284% over the three months to Wednesday.