FuelCell Stock Is Up 121% This Year and Could Rise Another 49%, Analyst Says

FeulCell Energy’s on-site power generators are in high demand from AI data-centers. (Courtesy FuelCell Energy)

Key Points

• Oppenheimer analyst Colin Rusch initiated coverage of FuelCell Energy with an Outperform rating and a $24 price target.
• FuelCell Energy shares rose 7.8% to $17.40 on Tuesday morning following the initiation.
• Rusch expects FuelCell Energy to increase its production capacity to 500 megawatts per year by fiscal 2029.

Shares of FuelCell Energy have been on a tear this year on investor exuberance over artificial-intelligence data-center demand for the company’s modular, on-site power generators. That bullish thesis received another vote of confidence on Tuesday.

Oppenheimer analyst Colin Rusch initiated coverage of FuelCell Energy with a Outperform rating, the equivalent of a Buy, and a $24 price target, representing 49% upside from Monday’s closing price of $16.14.

FuelCell stock rose 7.8% to $17.40 Tuesday morning.

Shares as of the closing bell on Monday had risen 121% this year but had declined 55% since closing at a recent closing high of $36.01 on June 30.

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“We view FCEL as a differentiated provider of firm, on-site power for
the data-center buildout,” Rusch said in the research note. “We anticipate demand remaining well ahead of supply as the company ramps production capacity.”

FuelCell has scored big from the AI boom with the bulk of demand for its on-site fuel cells coming from the data-center buildout. That continued to be the trend in the latest quarter as the company’s committed backlog grew nearly 5%.

Rusch noted that FuelCell is increasing production capacity to 500 megawatts per year by fiscal 2029, which would be about 10 times the level from fiscal 2026. He added that FuelCell has a $3.3 billion backlog, a more than 10 gigawatt pipeline, and more than 450 megawatts in capacity agreements.

“We see volume growth enabling substantial operating leverage, with a healthy balance sheet (~$737 million cash exiting F3Q26) bridging the company to positive cash flow as it executes its expansion,” Rusch said.

All this means that revenue will likely begin to grow significantly. Rusch estimates that it could reach $932 million by fiscal 2030, up from $158 million in fiscal 2025. That’s conservative based on the analyst consensus for revenue of $1.05 billion in fiscal 2030, according to FactSet.

“We see FCEL as well positioned to enjoy growth in excess of data center infrastructure peers while enjoying significant scale benefits and operating leverage as it grows into its expanded manufacturing footprint,” Rusch added.

Oppenheimer’s initiation of coverage was the latest bullish rating for FuelCell. Six of the 10 firms polled by FactSet have a Buy rating on FuelCell. The stock has two Sell and two Hold ratings.

Write to Kit Norton at kit.norton@barrons.com

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