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On Friday, RBC Capital Markets maintained a positive outlook on Bloom Energy Corp (NYSE:BE) shares, reiterating an Outperform rating and a $28.00 price target. The endorsement follows Bloom Energy’s fourth-quarter results, which surpassed expectations, and the company’s 2025 forecast, which indicates sustained revenue growth and margin expansion. According to InvestingPro data, the company’s market capitalization stands at $5.38 billion, with analyst price targets ranging from $13 to $33.
The report by RBC Capital analysts highlighted the absence of new customer orders but pointed to a 30% year-over-year increase in the backlog, adjusted for the SK transaction in 2023. This backlog growth was seen as evidence of a robust demand funnel. The analysts expressed confidence in Bloom Energy’s potential to secure significant bookings throughout the year. The stock has demonstrated remarkable performance, with InvestingPro showing a 156% return over the past year, despite high price volatility.
Despite the positive results and outlook, the guidance provided by Bloom Energy also revealed some unexpected operational expenditure (opex) cost increases. These increases are expected to slightly impact the firm’s EBITDA estimates, but RBC Capital’s analysts believe the strong demand opportunity justifies their continued support for the stock. InvestingPro analysis indicates the company is currently trading above its Fair Value, though five analysts have recently revised their earnings estimates upward for the upcoming period.
Bloom Energy’s performance and the subsequent analyst rating come at a time when the company is navigating the complexities of a dynamic energy market. The maintained price target of $28.00 reflects RBC Capital’s conviction in the company’s growth trajectory and its ability to capitalize on market opportunities. With revenue of $1.26 billion in the last twelve months and expectations of profitability this year, the company maintains a moderate debt level and strong liquidity position.
In other recent news, Bloom Energy reported a strong fourth quarter for 2024, significantly surpassing market expectations. The company posted an earnings per share of $0.43, well above the forecasted $0.29, and revenue reached $572.4 million, exceeding the anticipated $507.36 million. Bloom Energy also achieved a record annual revenue of $1.47 billion for 2024, marking a 10.5% increase from the previous year. Piper Sandler adjusted Bloom Energy’s stock target to $31 from $33, maintaining an Overweight rating, following the company’s strong product margins and EBITDA that exceeded expectations. KeyBanc Capital Markets maintained its Sector Weight rating, noting Bloom Energy’s solid performance in the fourth quarter and a 6% increase in the service backlog. BMO Capital Markets, however, reduced the company’s price target from $25.00 to $23.00, citing concerns about operating margins and reduced data disclosure. Despite these varied analyst perspectives, Bloom Energy’s guidance for 2025 remains optimistic, projecting revenue between $1.65 billion and $1.85 billion.
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