Craig-Hallum Reinstates FuelCell Energy (FCEL) at Buy, Citing AI Data Center Demand for Molten Carbonate Fuel Cells

Craig-Hallum reinstated coverage of FuelCell Energy (FCEL) with a Buy rating and a $22 price target on September 20, 2026, roughly a week after the company's fiscal third-quarter earnings. The firm had dropped coverage in early 2024, citing a muddled product focus and thin backlog. Analyst Eric Stine now sees FuelCell's molten carbonate technology as a strong fit for powering AI data centers, citing its continuous, on-site generation. The call follows FuelCell's first data center order and a 75 MW capacity reservation in Texas. Committed and awarded backlog reached $3.6 billion, with $737 million in cash. Risks remain. Third-quarter revenue fell 29% to $33 million, and management does not expect positive adjusted EBITDA until late fiscal 2027. Much of the backlog is reserved capacity, not confirmed orders. FCEL trades near $17.40, about 53% below its June 2026 high. Consensus is Moderate Buy, with a $21 median target.