Analysts Raise Price Targets for Bloom Energy (BE) Stocks Amid Growing Demand

Bloom Energy's Landmark Agreement

Bloom Energy Corporation (NYSE: BE) has seized the spotlight after announcing a landmark agreement with American Electric Power (NASDAQ: AEP) to supply up to one gigawatt (GW) of solid oxide fuel cells.

• This deal includes an initial order of 100 megawatts (MW) to power AEP's artificial intelligence (AI) data centers.
• This marks the largest commercial fuel cell procurement globally.

Market Reaction and Stock Surge

The market response to the AEP deal has been swift and dramatic, with shares of Bloom Energy surging nearly 59% on November 15, reaching an intraday high of $22.50, their highest level in over 20 months. Currently, it is trading at $26.30, reflecting a robust 13% weekly gain.

Analyst Reactions

Bloom Energy's breakthrough deal has drawn attention from analysts, eliciting a range of reactions:

• UBS analyst Manav Gupta raised his price target on Bloom Energy to $33 from $21 while maintaining a “Buy” rating.
• Piper Sandler analyst Kashy Harrison increased Bloom Energy's price target to $30 from $20, noting its growing customer base.
• Jefferies analyst Dushyant Ailani took a more cautious approach, raising the price target to $22 from $12 while maintaining a “Hold” rating.
• HSBC downgraded Bloom Energy to “Hold” from “Buy,” despite raising its price target to $24.50 from $17.20, citing near-term valuation concerns.

Opportunities and Risks Ahead

Bloom Energy is expanding operations to capitalize on demand, with initiatives like an 80-megawatt project in South Korea. While the company projects revenues between $1.4 billion and $1.6 billion for 2024, challenges remain regarding valuation and scalability.

Investors should monitor upcoming earnings reports as a crucial indicator of Bloom’s ability to sustain momentum.