Boston, MA 03/04/2014 (wallstreetpr) – FuelCell Energy Inc (NASDAQ:FCEL) starts the day with its continued rally, as its stock prices soar by nearly 17% during the opening session of the trade. FuelCell Energy’s rally is being connected with its competitor Plug Power’s Wal-Mart Stores Inc. (NYSE:WMT) order.
The Plug Power Story
Plug Power Inc. (NASDAQ:PLUG), which is an alternative energy provider, confirmed last Wednesday that it has received a record contract from Wal-Mart Stores Inc. (NYSE:WMT), which includes delivery and installation of hydrogen fuel cell solutions at the retailer’s six distribution centers in North America. The contract is a milestone achievement for Plug power, which has been gearing to position its technology among the mainstream. One of the significant factors in this transaction is Wal-Mart’s existing relationship with Plug Power. It is worthy to note that Wal-Mart had previously employed the company’s fuel cell solutions in its stores and the latest order comes as a testimony of how well Plug has delivered on its results.
The Wal-Mart contract has also caught much of the attention among the analysts. As per Cowen analyst Rob Stone, the Wal-Mart Stores Inc. (NYSE:WMT) contract is the beginning of many more contracts that are anticipated to come to Plug Power. Stone believes that the U.S. retailers like The Coca-Cola Company (NYSE:KO) and Procter & Gamble Co. (NYSE:PG) could also follow Wal-Mart Stores Inc. (NYSE:WMT)’s footsteps to employ alternative energy solutions at their stores and could even expand it to Europe. Stone has increased his price target on Plug from $5 to $5.5 per share, citing that the research firm has increased confidence about the revenue growth post its meeting with the company’s management.
What’s In For FuelCell Energy?
The recent rally of fuel cell makers essentially points out to the question as to what is in store for these small cap companies. These fuel cell companies have been loosing money for a long time, as the net loss accruing to FuelCell Energy Inc (NASDAQ:FCEL) for the year 2013 stood at $34.36 million, but the future prospects of the industry as a whole looks promising. Even the research reports also highlight the rapid adoption of clean energy by corporates in North America and Europe.
FuelCell Energy Inc (NASDAQ:FCEL) is scheduled to report its first quarter results on March 10, 2014. Ahead of the earnings day, the analysts have kept their estimate for the earnings per share at ($0.04) for the company, while revenue estimates are at 43.44 million.
