Bloom Energy Stocks on the Rise: Analysts Adjust Price Targets
Bloom Energy Stock Performance
Bloom Energy (NYSE: BE) saw its stock surge nearly 59% on November 15, becoming the top gainer on the NYSE after announcing a major deal with American Electric Power (NASDAQ: AEP) to supply up to 1 gigawatt (GW) of solid oxide fuel cells.
Strategic Partnership with AEP
The agreement with AEP includes an initial order of 100 megawatts (MW) of fuel cells, with additional orders anticipated in 2025. This partnership builds on Bloom Energy's ongoing collaboration with AEP, focusing on deploying solid oxide fuel cells (SOFCs) in commercial and industrial applications.
Bloom's fuel cells, currently powered by natural gas, can transition to hydrogen as it becomes more widely available, offering a pathway for companies to meet their sustainability targets.- Rapid deployment and high availability
- Power density of 100 MW per acre
- Addressing power needs of AI data centers
AEP CEO Bill Fehrman stated, “These fuel cells will help provide data centers and other large customers with the power they need to quickly expand in our regulated footprint as we continue to build infrastructure to deliver reliable energy for all our customers.”
Analyst Upgrades and Financial Prospects
The AEP agreement has prompted several analysts to upgrade their outlook for Bloom Energy. Biju Perincheril of Susquehanna Financial Group raised the target from $16 to $20, describing the agreement as a “massive win” that validates Bloom’s fuel cells as a viable solution for AI data centers, effectively addressing grid constraints and rising energy demand.
BMO Capital raised its price target on Bloom Energy to $19.50 from $12, with the firm expecting a positive reaction from the stock. However, BMO maintained a “Market Perform” rating, citing uncertainties regarding the timeline for the additional 900 megawatts of fuel cells expected beyond the initial order.
BTIG also raised its price target to $20 from $16, maintaining a Buy rating, while Piper Sandler upgraded the stock from “Neutral” to “Overweight”, revising the price target from $10 to $20.
Path to Profitability
The AEP agreement marks an important milestone for Bloom Energy. Although the company has not disclosed the exact revenue impact, historical trends suggest the deal could generate over $7 billion.
Bloom Energy has already achieved gross profitability, with margins reaching nearly 24% in Q3, and is progressing towards profitability at both operating and net margin levels, reinforcing its favorable financial trajectory.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.