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Investing.com - Bloom Energy Corp. (NYSE:BE) stock is falling despite Jefferies reiterating its Underperform rating and $31.00 price target following the announcement of a partnership with Brookfield Asset Management (BAM). According to InvestingPro data, BAM is currently trading above its Fair Value, with a market capitalization of $88.64 billion and a P/E ratio of 38.68.
BAM plans to invest up to $5 billion in deploying Bloom’s solid oxide fuel cells (SOFCs), with initial deployments expected in Europe by year-end. Under the agreement, Bloom Energy will be the preferred "onsite" power provider for BAM’s global AI Factories. BAM enters this partnership with strong fundamentals, showing revenue growth of 13.81% and maintaining a GOOD financial health score according to InvestingPro’s comprehensive analysis.
Jefferies notes that details on timing and true size of the partnership remain sparse, with key questions surrounding deployment timing, capacity expansion, and backlog growth. The firm believes investor confidence hinges on visibility into 2027 sales and capacity plans.
BAM is developing data centers across Europe, with approximately 1.5GW spread across 10 campuses in France, Italy, Spain, Poland, Germany, and Greece. Jefferies suggests Italy or Greece as likely deployment locations for Bloom’s fuel cells due to their higher gas contribution to the power mix.
For Bloom Energy’s upcoming third-quarter earnings call, Jefferies highlights three key areas of focus: the timing and true size of the BAM deal, potential capacity expansion announcements beyond the planned 2GW by year-end 2026, and backlog growth to support the 2027 outlook. With BAM’s earnings report due in 24 days and analyst price targets ranging from $54 to $75, InvestingPro subscribers can access detailed financial analysis and additional ProTips to better understand the partnership’s potential impact.
In other recent news, Brookfield Asset Management has entered a strategic $5 billion partnership with Bloom Energy to develop AI infrastructure utilizing Bloom’s fuel cell technology. This agreement designates Bloom as the preferred onsite power provider for Brookfield’s global AI factories, with projects underway and a European site announcement anticipated before the end of the year. Additionally, Brookfield Asset Management is dissolving its toll roads subsidiary in Peru, Rutas de Lima, due to a significant revenue decline exceeding 60%, attributed to halted toll collections. Despite this, Brookfield will continue operating the roads for the time being.
Morgan Stanley has maintained its Equalweight rating on Brookfield Asset Management, adjusting the price target to $62 from $59. The firm also revised its earnings per share estimates, reducing projections for the third quarter and the years 2025 and 2026, while slightly increasing the estimate for 2027. Meanwhile, RBC Capital has reiterated its Outperform rating on Brookfield, with a price target of $74, citing expectations for high-teens earnings growth and potential upside exceeding 20%. Brookfield has also partnered with Figure, a robotics company, to create a large humanoid pretraining dataset, leveraging Brookfield’s extensive real estate portfolio. These developments highlight Brookfield’s active engagement in diverse projects and strategic partnerships.
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