UBS Group upgraded FuelCell Energy (NASDAQ:FCEL) from neutral to buy on Tuesday. The stock surged in pre-market trading following the announcement. UBS raised its price target to $27.00 from $22.00. This new target suggests a potential upside of over 41% from the previous day's close.
The upgrade follows a period of volatility after a significant secondary share offering. UBS cited a recent deal with FIT Energy as a primary driver for the improved outlook. A new product development collaboration also serves as a key catalyst for the rating change.