NEW YORK (Dow Jones)--The brownout that has hit the rest of the alternative
fuel sources sector recently rolled over to FuelCell Energy Inc. (FCEL) Monday
after Raymond James & Associates slapped its Canadian counterpart Ballard
Power Inc. (BLDP) with an underperform rating.
While analyst Peter Tertzakian didn't mention FuelCell in the note
accompanying the downgrade, analysts, including Tertzakian, said FuelCell and
Ballard commonly trade in tandem.
FuelCell shares were recently down $1.94, or 10%, to $18.14 on volume of 1.4
million, compared with average daily volume of 2 million shares.
Ballard shares fell $3.19, or 7.4%, to $39.93 on volume of 496,700, compared
with average daily volume of 746,300 shares.
Without a hot summer to burn the excess power accumulated in anticipation of
a North American energy crisis, energy reserves sit full. The surplus has
pushed down the cost of oil and natural gas, taking a lot of attention away
from new energy sources, Tertzakian said.
With gas cheap at the pump and electricity bills fairly low, the average
North American consumer isn't looking around for alternatives.
"Neither the continental natural gas supply problem nor the electrical power
capacity issues are yet fully resolved; however, there is no doubt that the
same factors that drove energy technology stocks to momentous levels are now
driving them down," Tertzakian wrote in his research note.
The analyst downgraded Ballard to underperform from market perform and
slashed his 12-month price target to C$45 from C$110.
FuelCell officials weren't immediately available for comment.
Last week, Active Power Inc. (ACPW) and Capstone Turbine Corp. (CPST)
reported earnings that disappointed investors, sending their stocks down more
than 30%. The news rubbed off on other alternative power companies, such as
Ballard and FuelCell, whose shares dropped 5% and 10%, respectively.
After the earnings results last week, "in general the whole space is
experiencing a resetting of the bar," Adams Harkness & Hill analyst Namrita
Kapur said. "Add that to the fact that you're not seeing as many headlines of
an energy crisis and you've got some of the macro factors affecting the group
as well."
-Hollister H. Hovey, Dow Jones Newswires; 201-938-2007;
hollister.hovey@dowjones.com |
