Benzinga | Nov 11, 2021 03:59PM EST

H.C. Wainwright Turns Bullish On Fuel Tech, Sees Huge Upside

* H.C. Wainwright analyst Amit Dayal upgraded Fuel Tech Inc (NASDAQ:FTEK) to Buy from Neutral with a price target of $4 (an upside of 93%).

* The analyst sees an improving macro outlook for environmental remediation solutions, saying the post-pandemic recovery is supporting higher energy demands, "playing into Fuel Tech's offerings."

* Further, the company has a significantly stronger balance sheet relative to the year-ago period, with roughly $36 million in cash, Dayal adds.

* Recently, the company reported its Q3 results, with revenue of $7.56 million (-7.3% year-over-year), beating the consensus of $6.59 million. The gross margin was 49.2%.

* EPS was $0.02 per share, compared to $0.10 in 3Q20. Adjusted EBITDA was $0.9 million compared to $2.7 million a year ago.

* The Consolidated APC segment backlog was $8.2 million as of September 30, 2021, compared to $5.3 million as of December 31, 2020.

* Fuel Tech held cash and cash equivalents of $36.3 million and had no debt.

* Price Action: FTEK shares traded higher by 11.3% at $2.07 on the last check Thursday.