Disappointing earnings sent shares of FuelCell Energy down more than 10% on Monday. But Canaccord Genuity thinks investors should ignore the decline and get into the stock now. The firm upgraded its rating on the clean energy stock to buy from hold, and hiked its price target to $30. That indicates a more than 93% gain from Monday's close. Shares tumbled on Monday after the company reported fiscal second-quarter revenues that came in lighter than expected. But analyst George Gianarikas highlighted in a Tuesday note the positives from the financial report. "The company continues to push forward with plans to expand production capacity at its Torrington, CT, facility beyond the 100 MW target that it has said is needed to achieve adj. EBITDA profitability," Gianarikas wrote. "FuelCell is now planning to increase its annual production capacity to 500 MW, up from its 350 MW target previously, in light of increased demand." FCEL YTD mountain FuelCell Energy year-to-date. He added that the company continues to market itself well for data center opportunities. Gianarikas said that potential has led for the stock to be volatile, going from tripling in 2026 by early May to now off more than 40% from its highs for the year. However, Gianarikas is betting big that the data center potential for the company is real. "The exact timing of when this transformative data center deal is coming remains uncertain, with management only saying it expects something to materialize before the end of the fiscal year," he wrote. "However, we now feel there are enough data points to suggest that a landmark announcement is within reach, along with plenty more behind that… Right place. Right product. Right time." Shares of FuelCell rebounded in premarket trading on Tuesday by more than 11%.
<small>Source: CNBC</small>
