Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - RBC Capital has significantly raised its price target on Bloom Energy Corp. (NYSE:BE) to $123.00 from $75.00 while maintaining an Outperform rating on the stock. The company, currently valued at $26.09 billion, has seen its stock surge nearly 1,000% over the past year, according to InvestingPro data.
The price target increase reflects RBC Capital’s stronger confidence in Bloom Energy’s long-term opportunity, particularly in the behind-the-meter (BTM) datacenter market, which the firm believes is still in early stages of development. The company has demonstrated strong revenue growth of 22.7% in the last twelve months, supporting this optimistic outlook.
RBC Capital acknowledged competitive dynamics in the sector but pointed to Bloom Energy’s recent partnership announcement with Brookfield as evidence of the competitiveness of the company’s solution.
The firm believes Bloom Energy shares are currently priced for an incremental capacity increase, which RBC Capital thinks is supported by a large and growing total addressable market (TAM) opportunity.
The revised price target is based on estimate revisions and a change to a price-to-earnings (P/E) based valuation multiple, according to RBC Capital.
In other recent news, Bloom Energy has announced a significant $5 billion strategic partnership with Brookfield. This partnership positions Bloom as the preferred onsite power provider for Brookfield’s global AI factories, highlighting the company’s role in developing AI infrastructure powered by its fuel cell technology. Analysts have responded positively to this development, with UBS raising Bloom Energy’s price target to $115 while maintaining a Buy rating, and Evercore ISI increasing its target to $137, also maintaining an Outperform rating. BofA Securities adjusted its price target to $26, maintaining an Underperform rating, noting the partnership reinforces Bloom’s position in the AI-driven power-resiliency sector. Mizuho reaffirmed its Neutral rating with a $79 price target, highlighting Bloom’s commitment to large data center projects through this partnership. The collaboration is expected to include AI factory projects, with a European site announcement anticipated before the end of the year. This partnership marks Brookfield’s first investment through its dedicated AI Infrastructure strategy, which builds on its extensive global digital infrastructure investments.
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