Bloom Energy Poised for Growth: Buy Rating Affirmed Amid Strong Demand and Strategic Agreements

Analyst Andrew Percoco from Morgan Stanley maintained a Buy rating on Bloom Energy (BE – Research Report) and keeping the price target at $20.00.

Andrew Percoco has given his Buy rating due to a combination of factors that highlight the potential growth and profitability of Bloom Energy. The recent agreement with American Electric Power (AEP) to provide up to 1 GW of solid oxide fuel cells is a significant development. This deal includes an initial purchase of 100 MW, with expectations for further orders in 2025, indicating strong demand in the data center and large energy user markets.
Moreover, the agreement underscores a broader trend where both customers and utilities are increasingly recognizing the need for alternative power sources like fuel cells to meet rapid power demands. With the potential for $3 billion in product revenue from this order alone, and additional recurring revenue from service contracts, Bloom Energy is poised for substantial financial gains. The anticipated acceleration in order announcements and the significant operating leverage inherent in Bloom Energy’s business model suggest a strong earnings contribution margin, reinforcing a positive outlook for the company’s future performance.

In another report released yesterday, Evercore ISI also reiterated a Buy rating on the stock with a $22.00 price target.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BE in relation to earlier this year.

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Bloom Energy (BE) Company Description:

Bloom Energy Corp. engages in the manufacture and installation of on-site distributed power generators. Its product, Bloom Energy Server, converts standard low-pressure natural gas or biogas into electricity through an electrochemical process without combustion. The company was founded by K. R. Sridhar, John Finn, Jim McElroy, Matthias Gottmann, and Dien Nguyen on January 18, 2001 and is headquartered in San Jose, CA.