FuelCell Energy’s (FCEL) momentum from last week continued on Monday following a B. Riley Securities upgrade on FCEL stock.
On Wednesday, June 24, FuelCell announced a strategic agreement with Fit Energy, an energy infrastructure company tied to computing and artificial intelligence, to provide 380 megawatts (MW) of power for datacenters using FCEL’s fuell-cell technology. Two days later, shares jumped 22% amid a Jefferies upgrade to Buy and a $24 price target, citing both the new deal and “deep valuation discount” relative to one of its largest competitors, Bloom Energy (BE).
The stock was set to pop further Monday morning as B. Riley Securities’ Ryan Pfingst and Soundarya Iyer also upgraded the stock with an even higher price target, calling FCEL stock’s investment thesis “meaningfully strengthened” by the new partnership.
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Why B. Riley Says FCEL Stock Is a Buy
B. Riley’s Pfingst and Iyer upped their opinion on FuelCell stock to Buy from Neutral and significantly raised their price target to $32 per share from $13 previously. The new PT implies another 33% upside from Friday’s closing price.
“The firm order with Fit Energy provides increased confidence in FuelCell’s ability to convert significant data center players into customers,” they write.
| FuelCell Energy (FCEL): Quick Stats | |
|---|---|
| Market cap | $1.6 billion |
| Dividend yield | N/A |
| Forward price-to-earnings (P/E) | N/A (negative earnings estimates) |
| Price/earnings-to-growth (PEG) | N/A (negative earnings estimates) |
| Source: Yahoo! Finance. Data is as of June 29, 2026. | |
FuelCell’s deal calls for an immediate deposit for 30 MW of power that will be delivered later this year, followed by additional phases of 100 MW, 125 MW, and another 125 MW, for up to 380 MW. Each phase has a milestone-based payment due at the election of each phase.
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“The transaction converts ~8% of FuelCell’s current 5 GW proposal pipeline into signed capacity and supports its decision to expand its Torrington, CT facility to up to 500 MW of annualized production capacity,” B. Riley’s analysts say.
The $32 price target is roughly 5.5 times B. Riley’s fiscal 2027 sales estimate of $347.2 million, and “represents a slight premium” to Ballard Power (BLDP) and Plug Power (PLUG) at roughly 4x their sales estimates, but only half of Bloom Energy’s 11x.
FCEL stock was already having a monster year prior to the deal and upgrades, sitting at 140% gains, but as of early Monday’s trading, those gains had been extended to closer to 255%. Wall Street’s opinion on the stock had largely remained sour. As of early last week, the stock had just six opinions, all of them Holds. Now, the split is two Buys and four Holds. The average price target on shares is $22, which is actually 8% lower than Friday’s closing price.
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