FuelCell shares fell 35 cents, or 2.9 percent, to close at $11.50 Wednesday. The stock jumped more than 16 percent in Tuesday's session, after the Danbury, Conn., alternative energy company posted fourth-quarter results above expectations and scored a major contract in South Korea.

While the company operates in a volatile market with emerging technology, Canaccord Adams analyst John Quealy said investors are particularly restless because of expected news in coming weeks.

FuelCell makes highly efficient, emission-free molten carbonate fuel cells that are used to provide energy to power plants. Connecticut's public utility is considering a major order from the company, and the federal energy bill, which is expected to include big incentives for clean energy technologies, is still winding its way through Congress. Those decisions can be incredibly positive or negative for FuelCell shares.

"My guess is, its stock is going to stay volatile until we get the news out of Connecticut in the next few weeks," Quealy said in an interview Wednesday. In a note to investors, the analyst kept a "Buy" rating on the stock and raised his price target to $14 from $11, citing the company's increased production and strong quarter.

Quealy's positive view echoed that of RBC Capital Markets analyst Stuart Bush, who likewise hiked his price target to $14, from $12, and kept an "Outperform," or "Buy" rating on the shares. He noted the company improved its cost-to-revenue ratio in the fourth quarter, and "management guides to 20 percent additional cost reductions" in the current fiscal year.