FuelCell Energy (NASDAQ:FCEL) shares rose 9% in premarket trading on Tuesday after Oppenheimer initiated coverage of the company with an Outperform rating and a $24 price target.
Analyst Colin Rusch cited FuelCell Energy’s exposure to demand for on-site power generation from the expanding data centre market, describing the company as a “differentiated provider” of firm, on-site power solutions.
Oppenheimer Points to Planned Production Expansion
Rusch expects demand for FuelCell Energy’s power solutions to exceed available supply as the company expands its manufacturing capacity.
FuelCell Energy is targeting annual production capacity of 500 megawatts by fiscal 2029, more than 10 times its fiscal 2026 output.
According to the analyst, the planned increase in production could support improved project economics and greater operating leverage over the medium term. These expectations represent Oppenheimer’s analysis rather than company guidance on future profitability.
Backlog Reaches $3.3 Billion
Oppenheimer also cited FuelCell Energy’s $3.3 billion backlog and a project pipeline of more than 10 gigawatts as indicators of potential future demand.
The company has more than 450 megawatts covered by signed capacity agreements, according to the supplied information.
Rusch said these figures provide visibility into potential demand for additional production capacity as FuelCell Energy proceeds with its expansion plans.
FuelCell Energy Reports About $737 Million in Cash
FuelCell Energy ended its fiscal third quarter of 2026 with approximately $737 million in cash.
Management expects its available liquidity to support operations during the planned production expansion until the company reaches positive cash flow.
The timing of positive cash flow remains a forward-looking expectation and will depend on the company’s operating and financial performance as it increases production.
FuelCell Energy stock price
