Shares of the Danbury, Conn., company recently traded at $5.21, up 2.2%. The stock surged 98% this week through Wednesday, and it’s more than doubled year to date.
"The stock is up about 135% over the last month (S&P 500 up 3.4%), buoyed initially by a wave of regional 'climate ambition' initiatives associated with hydrogen and fuel cells, but also owing to a rerating of the alternative energy stocks on the back of the Biden election victory,” Coster wrote in a commentary cited by Seeking Alpha.
But “the more dramatic move over the last three days seems to be taking place in absence of new news," he said.
The company appears to be headed for profitability in 2022, and its fundamentals “do seem good,” Coster said, according to Bloomberg.
But FuelCell broke through Coster’s fair-value estimate. He initiated coverage Oct. 8, with a $3 share-price target and an overweight rating.
"Our neutral rating is not a call to sell the stock, which embeds significant optionality associated with carbon capture and the hydrogen economy,” Coster said, according to Seeking Alpha.
Last month, FuelCell "emphatically denied" allegations by short seller Night Market Research that it had lost two contract awards.
Night Market saw a potential 70% downside for the stock, which then traded around $1.89.