Why FuelCell Energy (FCEL) Is Down Today

NEW YORK (TheStreet) -- FuelCell Energy  (FCEL) plunged on Friday after peer company Plug Power  (PLUG) slid thanks to a pair of analyst downgrades.

Roth Capital downgraded Plug Power to "neutral" from "buy" despite raising the target price to $8 from 80 cents. The firm said the company's fourth quarter results, which it announced Thursday morning, indicate the momentum of its bookings is slowing. The firm contends that Plug Power's bookings could still grow at a historic rate, but a large portion of that growth may already have been reflected in the stock. The firm also cautions that some of Plug Power's shipments could be delayed because many of its products will be sent to customers that must still add hydrogen infrastructure, which could take longer than expected.

Cowen, meanwhile, downgraded the stock to "market perform" from "outperform." The firm noted the company's sales should increase this year thanks to strong bookings and gross margins should increase as volumes increase and some costs decrease. But Cowen believes the stock's valuation looked full before trading Friday.

FuelCell fell 10.81% to $2.98 at 3:24 p.m. on Friday.

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TheStreet Ratings team rates FUELCELL ENERGY INC as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate FUELCELL ENERGY INC (FCEL) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk."

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