BMO maintains Bloom Energy stock with $18 target

Published 07/05/2025, 11:36
BMO maintains Bloom Energy stock with $18 target

On Wednesday, BMO Capital Markets maintained its Market Perform rating on Bloom Energy Corp . (NYSE:BE) with a steady price target of $18.00. The stock currently trades at $16.34, having experienced significant volatility with a 53% surge over the past six months despite a recent 11% weekly decline. According to InvestingPro analysis, the company appears overvalued at current levels. The reiteration follows comments from American Electric Power (NASDAQ:AEP) regarding the impact of Ohio’s recently passed legislation, HB15, on its potential agreement with Bloom Energy.

American Electric Power, with a current stock price of $107.44 and a target of $115, holds an Outperform rating by BMO’s Utility and Power Analyst, James Thalacker. During AEP’s first-quarter earnings call, the company discussed HB15 and its implications for the potential 1 GW framework agreement with Bloom Energy. The agreement involves supplying AEP customers with behind-the-meter generation through Bloom Energy’s energy servers. With revenue growth of 21% in the last twelve months and a strong current ratio of 3.44, InvestingPro data shows Bloom Energy maintains solid operational metrics.

The Ohio Legislature’s HB15 will allow existing commitments of 100 MW to be grandfathered in. This legislative development is seen as positive for the potential agreement between AEP and Bloom Energy. However, BMO Capital’s analyst Ameet Thakkar noted that this positive outcome was already anticipated in consensus estimates, implying that the market had previously factored in the benefits of the legislation.

Bloom Energy Corporation, listed on the New York Stock Exchange, specializes in manufacturing solid oxide fuel cells that produce electricity. The company’s partnership with American Electric Power, if finalized, could provide a significant boost to its deployment of energy servers.

The price target of $18.00 set by BMO Capital Markets reflects the firm’s assessment of Bloom Energy’s valuation based on current market conditions and industry prospects. As of now, the company’s stock rating remains unchanged, and the market’s reaction to these developments will continue to be monitored.

In other recent news, Bloom Energy Corporation reported its first-quarter earnings for 2025, revealing a revenue of $326 million, which surpassed consensus estimates by approximately 11%. This marked a 39% year-over-year increase and set a new revenue record for the company. The company also achieved its first positive Q1 non-GAAP EPS of $0.03, exceeding the forecasted loss of $0.07. Bloom Energy’s non-GAAP gross margins rose to approximately 29%, significantly higher than Wall Street’s expectations of around 22%. Despite concerns over tariffs, Bloom Energy reaffirmed its full-year guidance, projecting 2025 revenue between $1.65 billion and $1.85 billion. Analysts from BTIG maintained a Buy rating on the company’s stock, with a price target of $30. The company’s strategic control over its supply chain and pricing, along with its focus on cost reductions, positions it well to navigate potential tariff impacts and sustain revenue growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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