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On Friday, KeyBanc Capital Markets sustained its Sector Weight rating for Bloom Energy Corp . (NYSE:BE), acknowledging the company’s solid performance in the fourth quarter of 2024. According to InvestingPro data, the company’s stock has shown remarkable strength with a 156% return over the past year, despite its high price volatility. The firm highlighted that Bloom Energy ended the year in strong alignment with its guidance, achieving expected revenue and margins. The product backlog remained steady, while the service backlog experienced a 6% increase.
Bloom Energy reported a successful completion of 2024, with management projecting nearly 20% revenue growth for 2025. This outlook is supported by the continued strong demand for Bloom’s energy servers and the company’s business momentum. In 2024, Bloom Energy generated $33 million in free cash flow (FCF), which KeyBanc anticipates will significantly increase in 2025. InvestingPro analysis reveals that 5 analysts have revised their earnings upward for the upcoming period, with the company expected to turn profitable this year. This growth in FCF is expected to provide Bloom with substantial liquidity to expand operations in line with the rising demand for its products.
The company’s order book includes a secured 100 megawatts from the 1 gigawatt order by American Electric Power (NASDAQ:AEP), and KeyBanc foresees that additional customers will seek Bloom’s power servers, considering the rapid deployment capability they offer. Despite the positive outlook and the anticipated growth in demand, KeyBanc maintains a Sector Weight rating on Bloom Energy shares, indicating a neutral stance towards the stock’s investment potential at this time.
In summary, while Bloom Energy has demonstrated a solid financial performance and has a positive growth trajectory for the coming year, KeyBanc has decided not to alter its rating, suggesting that investors maintain their current investment weighting in the company’s stock. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value. Investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research report, part of its coverage of over 1,400 US equities.
In other recent news, Bloom Energy has reported its fourth-quarter 2024 earnings, significantly surpassing market expectations. The company achieved an earnings per share (EPS) of $0.43, far exceeding the forecasted $0.29, while revenue reached $572.4 million, surpassing the anticipated $507.36 million. This performance marks a 60% year-over-year revenue increase, contributing to a record annual revenue of $1.47 billion for 2024. Bloom Energy’s strategic focus on innovation and cost reduction has been instrumental in achieving these results, amid a growing demand for its energy solutions.
In addition to its earnings report, Bloom Energy has been involved in discussions with utilities, including American Electric Power (AEP), for agreements that allow customers to secure the Investment Tax Credit ( ITC (NSE:ITC)) through 2028. The company has also been actively expanding its market presence, particularly in the commercial and industrial sectors. Piper Sandler recently adjusted its price target for Bloom Energy shares to $31, down from $33, while maintaining an Overweight rating, citing operational leverage concerns despite a strong start to 2025.
Bloom Energy’s outlook for 2025 remains optimistic, with projected revenue between $1.65 billion and $1.85 billion and expectations for a non-GAAP gross margin of approximately 29%. The company anticipates positive cash flow from operations and a 20-30% increase in Q1 2025 revenue compared to Q1 2024. These developments highlight Bloom Energy’s robust financial health and strategic positioning in the energy market.
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