NEW YORK (TheStreet) -- FuelCell Energy (FCEL) shares are up 4.5% to $2.37 on Wednesday after being upgraded to "outperform" from "market perform" by analysts at Cowen (COWN).
Analysts at the firm cited lowered manufacturing costs and advances in its stationary fuel cell power plant solutions which they believe will make the company economically viable.
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"While in several markets, including the U.S., fuel cell power plants are still a relatively novel technology for regulatory, government, and financing circles... we would expect the stationary fuel cell power plant technology penetration to increase. With continued cost improvements and ramping production levels, we believe the company is well on its way to becoming EBITDA positive by mid-FY2015 at the latest," said analysts at the firm.
Separately, 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 a few notable 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 deteriorating net income and poor profit margins."