Bloom Energy stock gains as UBS reiterates Buy rating on data center potential

Investing.com - Bloom Energy Corp. (NYSE:BE) stock gained after UBS reiterated its Buy rating and $115.00 price target on the company, citing potential benefits from expedited data center power grid connections. The stock, currently trading at $109.61, has delivered an impressive return of over 1,000% in the past year, according to InvestingPro data.

UBS highlighted a Bloomberg report that U.S. Energy Secretary Wright has sent a draft proposal to the Federal Energy Regulatory Commission (FERC) that would limit the regulator’s review period for data-center connections to the power grid to 60 days, significantly shortening a process that can currently take years.

The investment firm noted that American Electric Power (AEP) has already partnered with Bloom Energy to supply power to data centers, suggesting this could become a model for future utility partnerships.

UBS emphasized that Bloom Energy’s natural gas-powered fuel cells offer utilities a faster solution compared to gas turbines, with the company able to supply fuel cells within 6-9 months, allowing utilities to move forward with projects more quickly.

The firm expects that if the Trump administration succeeds in shortening regulatory approval timelines, data centers could come online faster, potentially accelerating orders for Bloom Energy’s front-of-meter solutions while the company continues to secure behind-the-meter orders for data center power.

In other recent news, Bloom Energy has made significant strides with its earnings and strategic partnerships. The company announced a new $5 billion partnership with Brookfield, which positions Bloom as the preferred onsite power provider for Brookfield’s global AI factories. This partnership aims to address the growing computational and power demands for artificial intelligence infrastructure. Analyst firms have responded positively to these developments, with RBC Capital raising its price target for Bloom Energy to $123, citing confidence in the company’s long-term opportunities in the datacenter market. Wells Fargo also increased its price target to $95, noting Bloom’s positive momentum and genuine demand for its behind-the-meter solutions.

UBS raised its price target to $115, maintaining a Buy rating, in light of the strategic partnership with Brookfield. Additionally, BofA Securities adjusted its price target to $26, highlighting the partnership as a reinforcement of Bloom’s position in the AI-driven power-resiliency sector. Mizuho reaffirmed its Neutral rating with a $79 price target, acknowledging Bloom’s role in large data center projects. These developments reflect a growing confidence among analysts in Bloom Energy’s market positioning and future potential.

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