FuelCell Energy Stock Jumps on Oppenheimer's 'Outperform' Rating, Data Center Demand

Shares of FuelCell Energy (NASDAQ:FCEL) jumped 9% in premarket trading on Tuesday after investment firm Oppenheimer initiated coverage on the stock with an Outperform rating and a $24.00 price target.

Analyst's Bullish Outlook

Oppenheimer analyst Colin Rusch highlighted FuelCell Energy's role as a "differentiated provider" of reliable, on-site power solutions, according to the initiation note. The firm sees significant opportunity for the company in serving the rapidly expanding data center market, which has immense and growing power needs.

Rusch anticipates that demand for FuelCell's products will consistently exceed supply as the company scales its operations. The analyst noted this expansion is expected to lead to more favorable project economics and significant operating leverage for the company in the medium term.

Growth Pipeline and Financials

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Oppenheimer's positive outlook is supported by FuelCell Energy's substantial commercial traction and project pipeline. The firm pointed to several key metrics that provide visibility into the company's growth trajectory:

• A $3.3 billion backlog.
• A project pipeline exceeding 10 gigawatts.
• Over 450 megawatts in signed capacity agreements.

FuelCell Energy is planning a major production ramp-up, targeting an output of 500 megawatts per year by fiscal year 2029, a more than tenfold increase from its fiscal 2026 capacity. The company exited its third fiscal quarter of 2026 with approximately $737 million in cash, which management expects will provide a sufficient liquidity runway to fund operations until it achieves positive cash flow.