BTIG maintains $30 target on Bloom Energy stock post-earnings

Published 01/05/2025, 10:58
BTIG maintains $30 target on Bloom Energy stock post-earnings

Thursday, Bloom Energy Corporation (NYSE:BE) received a reiterated Buy rating from BTIG, with analysts maintaining a $30.00 price target on the stock. The company’s first-quarter earnings for 2025 were reported after the market closed, showcasing revenues of approximately $326 million. This figure exceeded consensus estimates by about 11%, which had anticipated revenues near $293 million. The revenue surge was largely attributed to a repowering-related contract and stronger Product revenues, a segment known for its variable earnings. According to InvestingPro data, Bloom Energy has demonstrated strong momentum with an impressive 84.31% return over the past six months, despite being currently overvalued based on Fair Value analysis.

Bloom Energy’s non-GAAP gross margins for the quarter stood at roughly 29%, showing a significant year-over-year increase of approximately 1,100 basis points and aligning with the company’s full-year 2025 guidance. These margins surpassed Wall Street’s expectations, which were around 22%. Management at Bloom Energy reaffirmed their guidance for the year, signaling confidence despite concerns over tariffs. InvestingPro analysis reveals the company maintains a healthy current ratio of 3.21, indicating strong liquidity to meet short-term obligations. Subscribers can access 12 additional ProTips and comprehensive financial metrics through the Pro Research Report.

The company’s resilience in the face of potential tariff impacts is partly due to its U.S.-centric supply chain. Bloom Energy manufactures its Energy Servers in California and is actively expanding its production capabilities in the state. While some components are imported, they are typically custom items, which allows the company to maintain control over pricing and sourcing, thus avoiding reliance on markets like China.

Management acknowledged that the current tariff regime could potentially reduce gross margins by up to 100 basis points. However, they expressed confidence in finding cost reductions to neutralize the impact of tariffs if they persist. The company’s ability to offer a rapidly deployable power solution continues to drive broad-based demand, and its strategic control over supply chains and pricing positions it well to navigate tariff uncertainties and sustain revenue growth through 2025. BTIG’s analysts, therefore, reaffirm their positive outlook on Bloom Energy’s stock.

In other recent news, Bloom Energy Corp reported a significant achievement in its first quarter of 2025, posting its first-ever positive Q1 non-GAAP earnings per share (EPS) of $0.03, surpassing the expected loss of $0.07. Revenue for the quarter reached $326 million, marking a 39% increase from the previous year and setting a new company record. Despite these strong financial results, the company’s stock experienced a decline in aftermarket trading. Looking ahead, Bloom Energy anticipates continued revenue growth in the latter half of 2025, although potential tariff impacts could affect gross margins by up to 100 basis points. On the analyst front, Morgan Stanley (NYSE:MS)’s Andrew Percoco acknowledged Bloom’s strong start to the year, while UBS’s Manav Gupta highlighted the company’s strategic partnerships with utilities as a potential growth driver. The company remains confident in its 2025 revenue guidance, projecting between $1.65 billion and $1.85 billion, with a non-GAAP gross margin of approximately 29%. Bloom Energy also emphasized its resilience in navigating supply chain challenges, underscoring its diversified and robust supply chain strategy.

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