Jefferies cuts Bloom Energy stock price target to $19 from $25

On Wednesday, Jefferies analyst Lloyd Byrne adjusted the price target on Bloom Energy Corp . (NYSE:BE) shares, reducing it to $19.00 from the previous $25.00 while maintaining a Hold rating on the stock. The adjustment comes as InvestingPro data shows 4 analysts have revised their earnings downward for the upcoming period. Currently trading at $18.31, with a market capitalization of $4.22 billion, Byrne’s analysis anticipates first-quarter 2025 revenues to be around $294 million, aligning with consensus estimates. The firm has revised its gross margin forecast for the full year 2025 to approximately 27%, which is lower than the company’s guidance and consensus estimates of 29% and 28%, respectively. This forecast aligns with BE’s current gross margin of 27.45%, according to InvestingPro data, which offers comprehensive analysis through its Pro Research Reports covering over 1,400 US stocks.

The revision comes as Bloom Energy faces challenges in Ohio, where Senate Bill 2 (SB2) has introduced complications in deploying the company’s fuel cells through American Electric Power (NASDAQ:AEP). Despite this setback, AEP has identified alternative markets, such as Indiana Michigan Power (I&M), where it can implement these fuel cells.

Bloom Energy’s exposure to markets in Taiwan and India has also contributed to Jefferies’ cautious stance in the near term, with uncertainties surrounding tariffs potentially affecting the company’s operations. The analyst’s comments reflect concerns over the regulatory and trade environment that could impact Bloom Energy’s performance and market opportunities.

The price target adjustment follows recent developments that may influence Bloom Energy’s strategic deployment and financial outcomes. While AEP’s exploration of other markets for Bloom Energy’s technology provides a potential avenue for growth, the broader context of tariff uncertainties remains a concern for Jefferies.

Bloom Energy specializes in manufacturing solid oxide fuel cells that produce electricity through an electrochemical process. The company’s technology offers a cleaner alternative to traditional power generation methods, which is particularly relevant in the context of increasing global focus on sustainable energy solutions. Despite the current hurdles, Bloom Energy continues to seek opportunities to expand its reach and deploy its innovative technology in various markets.

In other recent news, Bloom Energy has announced a partnership with Conagra Brands (NYSE:CAG) to deploy its fuel cell technology at Conagra’s Ohio facilities. This 15-year power purchase agreement is expected to generate approximately six megawatts of electricity, covering a significant portion of the power needs at these sites and reducing greenhouse gas emissions by 19%. Concurrently, TD Cowen analysts have maintained a Hold rating on Bloom Energy, increasing their price target to $20.00, reflecting an optimistic view of the company’s potential growth in the data center sector.

On the other hand, Redburn-Atlantic has downgraded Bloom Energy’s stock rating to Sell, lowering the price target to $10.00 due to concerns about the company’s earnings growth and competitive pressures in the fuel cell market. The firm cites emerging competitors as a factor that may impact Bloom Energy’s market share. Despite these challenges, Bloom Energy’s collaboration with Conagra is part of a broader strategy to support sustainability goals, aligning with Conagra’s science-based climate targets for 2030.

The partnership is seen as a strategic move for Bloom Energy, enhancing its role in the clean energy sector. Analysts from TD Cowen remain cautious, noting potential concerns with Bloom Energy’s safe harbor provisions and product backlog, even as they recognize the positive cash developments and market expectations. Meanwhile, Redburn-Atlantic’s analysis suggests a tempered growth forecast, highlighting the risks Bloom Energy faces in its current market environment.

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