Shares of electrical equipment manufacturer FuelCell Energy (FCEL) – Request report fell on Thursday after JPMorgan analyst Paul Coster cut the stock to the equivalent of selling.
Coster has a target price of $ 10 for the Danbury, Connecticut company. FuelCell shares fell 11% to $ 17.01 at last check.
The share had more than quadrupled by 2020. And by 2021 through Wednesday, it was up 71%. “We think the stock here is valued liberally,” said Coster.
In the same note, Coster started the coverage of Plug Power, a manufacturer of comparable hydrogen fuel cells (PLUG) – Request report with a hold rating and a target price of $ 60.
That also points to a downside: Plug Power recently traded at $ 65.69, down 5.5%.
JP Morgan also sees Plug as overvalued, as the stock rose by more than a factor of 10 in 2020 and 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 shares of PLUG for $ 29.29 each.
Tuesday, Plug Power and the French car manufacturer Renault (RNLSY) unveiled a joint venture for hydrogen vans in Europe.
The joint venture will begin commercializing fuel cell light commercial vehicles in Europe in 2021 with pilot fleet implementations.
These recent partnerships, Coster said, “give us confidence in the 2024 targets of $ 1.2 billion in revenue [and] $ 250 million in adjusted Ebitda. ”