UPDATE: Stifel Reiterates on FuelCell Energy as 2014 Looks More Promising

In a report published Wednesday, Stifel analyst Jeffrey Osborne reiterated a Buy rating on FuelCell Energy FCEL, and raised the price target from $1.75 to $2.00. In the report, Stifel noted, “FuelCell Energy's reported results showed multiple moving pieces that led to the sell off in shares. Namely, the sequential drop in backlog from 123.0 MW to 107.3 MW, drop in cash balance due to timing of Bridgeport, CT project collections, and lack of conversion of 30 MW of projects from pipeline into contracts that many expected, including ourselves, would help shape visibility for 1H14 as Bridgeport is turned over. We were pleased to hear of pipeline growth and lack of obstacles in financing for 2014; however, we expect the shares to take a pause in the $1.40-$1.60 range until management can convert new projects into actual orders. We continue to recommend shares for longer term investors and would be a buyer on any material weakness from these levels.” FuelCell Energy closed on Tuesday at $1.41.