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FuelCell’s $100M debt facility with Generate Lending a positive factor, Roth says

The total value of backlog and product awards is about $2 billion, including a backlog of $1.3 billion and an award pipeline of about $700 million, Roth said
A photo of a FuelCell facility
The company posted first-quarter revenue that beat Wall Street estimates

FuelCell Energy Inc (NASDAQ:FCEL) can focus on project execution and cash flows thanks to a $100 million debt facility from Generate Lending LLC, according to Roth Capital Partners.

In December, FuelCell said it expects to use the debt facility to finance the construction, installation and commissioning of projects. Included are Long Island Power Authority and Connecticut Department of Energy & Environmental Protection projects.

“The $100 million debt financing capacity with Generate is a positive, in our view, allowing the management team's focus to shift to project execution and cash flows,” Roth analyst Craig Irwin wrote Friday in a research note.

READ: FuelCell arranges $100M in 1Q new project construction finance commitments

The Danbury, Connecticut, company’s generation backlog, according to Roth, is now $982.4 million, driven by the execution of the first of three Long Island Power Authority’s power purchase agreements.

The total value of backlog and product awards is about $2 billion, including a backlog of $1.3 billion and an award pipeline of about $700 million, Roth said.

Roth lowered its 12-month price target to $0.45 from $0.55 and maintained a Neutral rating, saying it “will look to turn positive on visibility for a credible path to profitability.

First-quarter revenue beat

On Thursday, FuelCell reported first-quarter revenue that beat Wall Street estimates.

For the three months ended January 31, the company posted a net loss of $0.33 per share on revenue of $17.8 million, compared with $38.6 million a year earlier. The average forecast of analysts was for a loss of $0.18 per share on revenue of $11.38 million.

The company’s stock traded at $0.43 in Friday’s Nasdaq trading.

Contact Dennis Fitzgerald at [email protected]

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