UPDATE: Stifel Initiates Coverage On FuelCell, Shares Trending Up

In a report issued Wednesday, Stifel initiated coverage on FuelCell Energy (NASDAQ: FCEL) with a rating of Buy and a target price of $2.90.

Analyst Sven Eenmaa sees that FuelCell is an increasingly cost-competitive source of energy, which makes it very attractive. Eenmaa also sees that FuelCell's technology remains "largely untapped," which could mean for a bright future.

One project pipeline that Stifel highlighted in conjunction with NRG Energy could be an up to $12 billion market opportunity.

Shares of FuelCell Energy are surging, up 7.62 percent to $2.40.