FuelCell Energy's Fit Energy USA pact expands capacity to 500 MW annually, backed by a $200 million–$275 million investment and an initial 30 MW deposit with warrants for up to 380 MW. UBS raised its price target to $22 and Jefferies upgraded to Buy with a $24 target, sending shares up over 25%.
FuelCell Energy has entered into a strategic agreement with Fit Energy USA to supply utility-scale fuel cells, including an initial 30 MW commitment to be delivered later this year and warrants tied to future deployment milestones of up to 380 MW.
The partnership is supported by a $200 million to $275 million investment over the next 24 months, validating FuelCell’s expansion of annual production capacity to 500 MW to meet growing demand from data center customers.
Following the pact, UBS raised its price target from $7.25 to $22 and Jefferies upgraded FuelCell to Buy with a $24 target, citing a shift to executing a visible backlog and the stock’s valuation appeal relative to competitors.
Shares of FuelCell Energy jumped over 25%, marking the largest single-day gain in more than a year and drawing significant attention from retail investors.
