FCEL Stock Worth Buying After a Strong Rally?

FuelCell Energy’s FCEL shares have surged as sentiment improved, rising 194.9% year to date and trading at $21.56, with a 6–12-month price target of $28 suggesting additional upside. However, the article says the investment case is not straightforward because losses persist, backlog visibility is weaker, and converting proposals into signed contracts remains uncertain. For near-term growth, the company points to power demand from AI and data centers. Its second-quarter pipeline reached 4 GW, up 267% sequentially, with about 89% of proposals tied to data centers, and it highlighted a 12.5-MW FuelCell Energy Block designed to shorten time-to-power. Carbon capture is another potential pathway: two modules were en route to Rotterdam for ExxonMobil. Profitability remains the key concern, with fiscal 2026 Q2 revenue of $35.6 million, a gross loss of $12.9 million, and a net loss of $77.6 million, alongside negative adjusted EBITDA. Funding risk also factors in, given $441 million in cash as of April 30, 2026.