Jefferies maintains Hold on Bloom Energy stock amid 20% rally

Investing.com - Jefferies has maintained its Hold rating and $24.00 price target on Bloom Energy Corp. (NYSE:BE) following the stock’s approximately 20% rally last week. According to InvestingPro data, BE’s current valuation appears stretched, with a P/E ratio of 449x and an EV/EBITDA multiple of 93x.

The research firm noted multiple potential catalysts behind the recent stock movement, including a letter from PJM Interconnection, the CEO’s Bloomberg interview, and possible read-throughs from Crowdstrike earnings. The stock’s momentum has been remarkable, with InvestingPro data showing a 103.87% year-to-date return and technical indicators suggesting overbought conditions.

Jefferies estimates that investors might be anticipating around 1GW of sales in 2027, a target it considers possible given Bloom Energy’s expansion of capacity to 2GW by year-end 2026, with 1.3GW allocated for product and the remainder for service.

The stock is currently trading at approximately 22 times estimated 2027 EBITDA of $526 million, compared to a median multiple of about 18 times for companies adjacent to the data center and hyperscaler sectors.

Jefferies questioned whether investor expectations are getting ahead of themselves, noting that while the volume target is achievable, "cadence and timing of deals matter" as expectations increase following the DC deal and PJM’s efforts to require new supply with new load.

In other recent news, Bloom Energy reported its second-quarter 2025 earnings, significantly surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.10, well above the forecasted $0.01, and revenue reached $401.2 million, exceeding projections of $376.24 million. These results highlight Bloom Energy’s robust financial performance. In another development, Mizuho raised its price target for Bloom Energy to $48 from $31, maintaining an Outperform rating. This adjustment reflects the company’s plans to expand its manufacturing capacity to meet increasing data center power demand. Additionally, Jim Hagemann Snabe joined Bloom Energy’s Board of Directors, bringing extensive experience in scaling global enterprises. Snabe’s previous roles include co-CEO of SAP and Chairman of Siemens AG. These developments indicate strategic growth and leadership enhancements for Bloom Energy.

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