FuelCell Energy Inc. shares rose 25.50% to $24.66 on Friday, driven by a fresh analyst upgrade and a major clean-power agreement with Fit Energy USA LP. The stock movement reflects growing investor confidence in the company's strategic shift towards data centers and hyperscalers. Jefferies analyst Dushyant Ailani upgraded the stock from Hold to Buy and raised the price target from $16 to $24, reinforcing the potential of the recent commercial arrangement.

Strategic Agreement with Fit Energy

FuelCell Energy announced a deal with Fit Energy to provide up to 380 megawatts (MW) of clean, baseload on-site power for data centers. The agreement includes an upfront deposit for an initial 30 MW scheduled to begin delivery later this year. Fit Energy is eligible to receive warrants tied to future deployment milestones up to 380 MW, aligning long-term value creation with project execution. "This agreement further validates our decision to scale our operations to 500 MW, preserving our ability to serve a broad and growing pipeline of customers," said Jason Few, President and CEO of FuelCell Energy.

Data Center Strategy and Pipeline

The company is aggressively targeting the data center sector, which now accounts for approximately 89% of its proposal pipeline. The total proposal pipeline grew 267% quarter-over-quarter to 4 gigawatts. To support scalable deployment, FuelCell Energy introduced a standardized 12.5 MW fuel cell energy block product. The average proposal size has increased from 65 MW to 130 MW in a single quarter, indicating larger deal opportunities.

Financial Performance

For the quarter ended April 30, 2026, FuelCell Energy reported total revenues of $35.589 million, a 5% decrease from the prior year. The company posted a net loss of $78.7 million, compared to a net loss of $38.8 million in the same period last year. Adjusted EBITDA improved to a loss of $17.1 million from a loss of $19.3 million year-over-year.

Segment performance showed mixed results, with product revenue rising to $18 million from $13 million, while service revenue decreased to $4.2 million from $8.1 million and generation revenue fell to $8.7 million from $12.1 million.

Market Technicals

FuelCell Energy continues to trade well above its major trend markers. The stock sits about 25% above the 20-day simple moving average at $20.29 and roughly 147% above the 200-day simple moving average at $10.26. The trend structure remains bullish, with the 20-day average positioned above the 50-day average and a golden cross in place since October 2025. Momentum indicators support the move, with the MACD above its signal line and a positive histogram signaling buying pressure. Key resistance is identified at $27.50 near the 52-week high zone.

Wells Fargo analyst Praneeth Satish has maintained an Underweight rating on FuelCell Energy while raising the stock's price target to $8 from $6. The adjustment reflects a revised valuation outlook for the company, which trades on the NASDAQ under the ticker FCEL. The revised target suggests potential upside despite the Underweight stance on the stock.

Rating and Target Details

The research note highlights a shift in the price objective without altering the overall Underweight recommendation. Below are the key changes outlined by the analyst:

The Underweight rating implies that the stock is expected to underperform relative to the broader market or sector averages over the specified period. The increase in the price target indicates a reassessment of the company's intrinsic value or future earnings potential.