Analysts at Oppenheimer on Wednesday told clients that share of Fuel Cell Energy Inc. (FCEL - Get Report)  will likely more than double from Tuesday's closing price below $2 a share and initiated coverage with an outperform rating.

Fuels Cell shares jumped more than 12% on the news Wednesday morning, trading up 24 cents at $2.12 after Oppenheimer gave the shares a $4 price target. 

Colin Rusch, the Oppenheimer analyst said in his report that, "we believe FCEL is the clear leader in stationary fuel cell applications, which is positioned to reach positive operational cash flow in the next 12-18 months. "

He said the company's growing integration with traditional U.S. utilities on corporate college campus applications as well as Asian opportunities as growth drivers.

Fuel cells combine hydrogen and oxygen to produce electricity, producing only water as a byproduct. The technology has been competing with solar and wind energy in the market for electricity generation, and with electric vehicle applications with Tesla.

In September the company raised about $28 million in an Oppenheimer-run convertible preferred stock offering.

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