Fuel cell power company FuelCell Energy gains analyst coverage emphasizing robust datacenter demand for backup and supplemental power generation.

FuelCell Energy Inc (NASDAQ:FCEL) shares rose 9% in premarket trading Tuesday after Oppenheimer initiated coverage with an Outperform rating and a $24.00 price target. The investment firm highlighted the company's positioning as a "differentiated provider" of firm on-site power solutions tailored for the rapidly expanding data center market.

Analyst Colin Rusch expects demand to consistently outpace supply as FuelCell Energy scales production capacity to 500 megawatts per year by fiscal 2029, more than tenfold its fiscal 2026 output. This expansion is expected to drive increasingly favorable project economics and substantial operating leverage.

Commercial traction remains strong, Rusch noted, backed by a $3.3 billion backlog, a project pipeline exceeding 10 gigawatts, and over 450 megawatts in signed capacity agreements. These metrics provide significant visibility into capacity absorption as the company executes its growth strategy.

FuelCell Energy exited its third fiscal quarter of 2026 with approximately $737 million in cash, providing a robust financial cushion. Management expects this liquidity runway to sustain operations through the production ramp until the company achieves positive cash flow.