Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - BofA Securities has raised its price target on Bloom Energy Corp. (NYSE:BE) to $26.00 from $24.00 while maintaining an Underperform rating on the stock. According to InvestingPro data, Bloom Energy, currently valued at $26.1 billion, has seen its stock surge over 400% year-to-date, with multiple valuation metrics suggesting the stock is trading at premium multiples.
The adjustment follows Bloom Energy’s new partnership with Brookfield, which BofA analyst Dimple Gosai describes as adding a "blue-chip counterparty" and reinforcing Bloom’s position in the AI-driven power-resiliency sector.
The partnership, valued at up to $5 billion, positions Bloom Energy as Brookfield’s preferred onsite-power provider for grid-constrained data centers, representing approximately 1.8GW at BofA’s forward pricing estimates.
BofA notes that the agreement remains an early-stage memorandum rather than contracted backlog, with initial deployments expected to be gradual rather than serving as a near-term earnings catalyst.
Despite the strategic win, BofA maintains its Underperform rating, noting that Bloom’s stock has already rallied 33% (adding $6.6 billion in market capitalization), suggesting investors are valuing the potential Brookfield earnings stream at 33-66× EBITDA compared to Bloom’s five-year average of approximately 14×. InvestingPro data reveals the stock is currently trading above its Fair Value, with an EV/EBITDA multiple of 218x. For deeper insights into Bloom Energy’s valuation and 20 additional ProTips, subscribers can access the comprehensive Pro Research Report.
In other recent news, Bloom Energy has announced a strategic $5 billion partnership with Brookfield to develop AI infrastructure using its fuel cell technology. This partnership designates Bloom as the preferred onsite power provider for Brookfield’s global AI factories, marking the first phase of a joint vision to address growing computational and power demands. UBS has responded by raising Bloom Energy’s price target to $115, maintaining a Buy rating, while Evercore ISI has increased its price target to $137, retaining an Outperform rating. Mizuho, however, has reiterated a Neutral rating with a $79 price target.
Bloom Energy’s collaboration with Brookfield includes a commitment to fuel cell generators, reinforcing Bloom’s role in large data center projects. Evercore ISI also initiated coverage on Bloom Energy with an Outperform rating, highlighting the company’s ability to meet current power demands through its versatile fuel-agnostic servers and strong momentum with utilities and AI companies. This partnership represents Brookfield’s first investment through its dedicated AI Infrastructure strategy, building on its extensive global investments in digital infrastructure.
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