FuelCell Energy (FCEL) Stock: Oppenheimer Sees 49% Upside – Here’s Why

TLDR

• Oppenheimer analyst Colin Rusch started coverage of FuelCell Energy with an Outperform rating and a $24 price target.
• The target implies 49% upside from Monday’s closing price of $16.14.
• FuelCell stock rose as much as 8% to $17.40 on Tuesday morning.
• Rusch expects production capacity to reach 500 megawatts a year by fiscal 2029, more than ten times fiscal 2026 output.
• The company holds a $3.3 billion backlog, a 10-gigawatt project pipeline, and about $737 million in cash.

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FuelCell Energy stock climbed as much as 8% Tuesday, touching $17.40. The move followed a new bullish call from Wall Street.

FuelCell Energy, Inc., FCEL

Oppenheimer analyst Colin Rusch started coverage of the company with an Outperform rating. He set a price target of $24, pointing to 49% upside from Monday’s close of $16.14.

The stock has already had a strong year. It’s up 121% year to date, driven largely by investor interest in AI data centers.

FuelCell makes modular, on-site power generators. These systems are increasingly used to power data centers that need reliable electricity fast.

Why Oppenheimer Is Bullish

Rusch called FuelCell a differentiated provider of firm, on-site power for the data center market. He expects demand to keep outpacing supply as the company grows.

The analyst projects FuelCell will boost production capacity to 500 megawatts per year by fiscal 2029. That would be more than ten times its fiscal 2026 output.

Rusch expects that scale-up to improve project economics. He also sees it creating operating leverage over the next few years.

Backlog and Cash Position

FuelCell’s commercial pipeline backs up the bullish case. The company has a $3.3 billion backlog and a project pipeline topping 10 gigawatts.

It has also signed capacity agreements covering more than 450 megawatts. Those contracts give investors an early look at demand for its expanded output.

On the balance sheet, FuelCell ended its third fiscal quarter with roughly $737 million in cash. That gives the company a cushion as it ramps production.

Management has said the cash should last through the production ramp. The goal is to reach positive cash flow without needing to raise more money.

Not every part of the story has been smooth this year. FuelCell stock is down 55% from its 2026 closing high of $36.01, set on June 30.

That pullback came after a sharp run-up earlier in the year. Tuesday’s Oppenheimer note helped the stock claw back some of those losses.

Some early reports pegged the premarket move as high as 9% before the opening bell. The stock settled into a gain of about 7.8% shortly after markets opened.

FuelCell trades under the ticker FCEL. The company has not issued a public comment on the new Oppenheimer rating as of Tuesday morning.