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On Friday, TD Cowen analysts adjusted their outlook on Bloom Energy Corp . (NYSE: NYSE:BE), increasing the price target to $20.00 from the previous $13.00 while maintaining a Hold rating on the stock. Currently trading at $23.05, BE has shown significant volatility, as highlighted by InvestingPro data, with a remarkable 156% return over the past year. The revision reflects a more optimistic view of the company’s future financial performance, particularly in relation to the anticipated demand from data centers for power.
The analysts noted that Bloom Energy’s shares are poised to benefit from the narrative surrounding power demand from data centers. While the company operates with a moderate debt level and maintains strong liquidity with a current ratio of 3.36, analysts expressed caution over several aspects, including the status of safe harbor provisions, the Accounts Payable (AEP) status, the general level of disclosure, and a flat product backlog, which may draw attention and concern from investors.
The recent appearance of approximately $250 million in cash from SK Accounts Receivable was acknowledged as a positive development. The guidance provided by Bloom Energy was seen to encompass the general market expectations. Nonetheless, the analysts suggested that the company’s gross margins may have reached their peak.
The revised price target of $20 is based on an estimated valuation of around 20 times the enterprise value to EBITDA on the company’s projected adjusted EBITDA of $267 million for the year 2026. According to InvestingPro analysis, the stock appears overvalued at current levels, with analyst targets ranging from $13 to $33. The analysts concluded by reiterating their Hold rating, indicating that while they are becoming more favorable towards Bloom Energy’s story, they recommend remaining on the sidelines until more confidence is gained in the company’s positioning within the data center market and the execution of safe harbor activities. For deeper insights into BE’s valuation and 12+ additional ProTips, consider exploring the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Bloom Energy Corp. has reported annual sales of $1.47 billion for 2024, surpassing its $1.4 billion target, with a record $572 million in fourth-quarter sales alone. UBS analyst Manav Gupta reaffirmed a Buy rating with a $33 price target, citing continued growth potential and dispelling concerns about the expiration of the Investment Tax Credit. RBC Capital Markets also maintained an Outperform rating with a $28 target, noting a 30% increase in backlog year-over-year, although operational expenditures have slightly impacted EBITDA estimates.
Conversely, BMO Capital Markets adjusted its price target to $23, citing mixed signals from Bloom Energy’s year-end call and concerns about backlog growth and operating margins. KeyBanc Capital Markets kept a Sector Weight rating, acknowledging Bloom Energy’s strong 2024 performance and projecting nearly 20% revenue growth for 2025. Piper Sandler lowered its price target to $31 while maintaining an Overweight rating, pointing to strong product margins and a robust demand environment despite some operational leverage concerns. These developments highlight a varied analyst perspective on Bloom Energy’s financial health and growth trajectory.
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