BofA Securities reiterates Underperform rating on Bloom Energy stock

Published 24/07/2025, 18:36
BofA Securities reiterates Underperform rating on Bloom Energy stock

Investing.com - BofA Securities maintained its Underperform rating and $20.00 price target on Bloom Energy Corp . (NYSE:BE) in a research note Thursday. The stock, currently trading at $33.59, has shown significant momentum with an 85.7% return over the past year. According to InvestingPro analysis, the company appears to be trading above its Fair Value.

The firm cited concerns about Bloom Energy’s ability to scale beyond pilot projects to large multi-site deployments, despite the company’s suggestion that approximately 30% of future data centers may adopt onsite generation.

BofA acknowledged that Bloom Energy has deployed more than 400 megawatts to data centers to date, representing a growing portion of the approximately 1.5 gigawatts deployed since the company’s inception.

The research firm noted that the structural trend toward onsite generation for data centers is supportive for Bloom Energy’s business model.

BofA indicated it would maintain its Underperform rating while looking for evidence of improved disclosures, commercial ramp, and gross margin leverage from the company.

In other recent news, Bloom Energy announced a collaboration with Oracle (NYSE:ORCL) to deliver onsite power to Oracle Cloud Infrastructure data centers in the U.S. This partnership involves the deployment of Bloom’s fuel cell technology, which aims to provide reliable and cost-efficient power within 90 days. The agreement is designed to support the increasing demand for Oracle’s AI and cloud computing services. Additionally, UBS has maintained its Buy rating and $29.00 price target for Bloom Energy, driven by plans for Amazon (NASDAQ:AMZN) Web Services to use Bloom energy servers at a new data center facility.

JPMorgan also upgraded Bloom Energy from Neutral to Overweight, with a new price target of $33.00, citing the unexpected qualification of fuel cells for 48E tax credits. This legislative change is expected to positively impact revenue and margin estimates starting in fiscal year 2026. UBS reiterated its Buy rating, highlighting the growing electricity demand from data centers, which could reach 12% of nationwide consumption by 2028. In Virginia, data centers already account for 25% of electricity usage, underlining the significant role Bloom Energy’s technology could play in this sector.

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