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Investing.com - BMO Capital has raised its price target on Bloom Energy Corp. (NYSE:BE) to $97.00 from $33.00 while maintaining a Market Perform rating.
The price target increase follows Bloom Energy’s announcement of a strategic partnership with Brookfield Asset Management (BAM), an $88.64 billion market cap company with strong revenue growth of ~14% over the last twelve months. According to InvestingPro analysis, BAM currently trades above its Fair Value, with analyst price targets ranging from $54 to $75. Under this partnership, Brookfield will provide programmatic funding to finance up to 1 gigawatt or $5 billion of Bloom Energy’s servers to power behind-the-meter (BTM) data centers.
Brookfield is committing up to $1 billion in equity for projects that meet agreed-upon investment criteria. These investments will be evaluated on a case-by-case basis. With a solid financial health score of "GOOD" according to InvestingPro, which offers comprehensive analysis and additional insights through its Pro Research Reports, BAM appears well-positioned to execute this strategic initiative.
BMO Capital noted that this partnership structure resembles Bloom Energy’s previous framework agreement with American Electric Power (AEP). The firm expressed uncertainty about how many megawatts will ultimately be deployed through this new arrangement.
Despite the significant price target increase, BMO Capital maintained its Market Perform rating on Bloom Energy stock, indicating the momentum from this partnership announcement "seems warranted for now."
In other recent news, Bloom Energy has announced a significant $5 billion partnership with Brookfield Asset Management to develop AI infrastructure using Bloom’s fuel cell technology. This agreement positions Bloom Energy as the preferred onsite power provider for Brookfield’s global AI factories, with initial deployments expected in Europe by the end of the year. Meanwhile, Jefferies has reiterated its Underperform rating for Bloom Energy, maintaining a $31 price target despite the partnership announcement.
Brookfield Asset Management is also in the spotlight as Morgan Stanley has raised its price target for the company to $62, maintaining an Equalweight rating. However, Brookfield is facing challenges in Peru, where it plans to dissolve its toll roads subsidiary, Rutas de Lima, due to a significant revenue drop of over 60% attributed to suspended toll collection. Despite this, Brookfield will continue operating the roads for now. Additionally, Brookfield has partnered with Figure, a robotics company, to develop a large humanoid pretraining dataset using Brookfield’s extensive real estate portfolio. These developments reflect Brookfield’s diverse strategic initiatives and ongoing challenges.
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