Bullish indicating open at $55-$60, IPO prices at $37
On Friday, TD Cowen maintained a Hold rating on Bloom Energy Corp . (NYSE:BE) shares, with a steady price target of $20.00, above the current trading price of $17.06. According to InvestingPro data, analyst targets range from $10 to $35, reflecting the market's mixed sentiment on this volatile stock. The firm's analysts focused on the potential growth influence of the company's data center outlook. They anticipate an on-target quarter and a positive forecast from the management, with InvestingPro showing revenue growth of 10.53% over the last twelve months. The analysts highlighted that investor attention is likely centered on confirming the $12-15 billion pipeline, which could be preserved to secure tax credits for 2024. With the company's next earnings report due in 21 days, investors seeking deeper insights can access comprehensive analysis through InvestingPro's detailed research reports. Another point of interest is the effect of legislative changes in Ohio, specifically SB2/HB15, on the significant AEP 1GW deal, estimated to constitute a quarter of the pipeline.
Bloom Energy's upcoming financial results are expected to align with previous forecasts, considering that the company's performance is typically stronger in the latter part of the year. The analysts from TD Cowen project that the company will reaffirm its guidance, reflecting the anticipated back-end loaded nature of its 2025 operations.
The company, which specializes in providing solid oxide fuel cell systems, could see a significant portion of its future growth stemming from the data center sector. The analysts suggest that the way Bloom Energy addresses this opportunity could be pivotal for its next growth phase.
The current legislation in Ohio, namely SB2/HB15, is also a critical factor that could influence Bloom Energy's large-scale project with American Electric Power (NASDAQ:AEP). The outcome of this deal may have substantial implications for the company's pipeline and its ability to capitalize on tax credits in the coming years.
In summary, TD Cowen's analysts expect Bloom Energy to remain consistent with its guidance and are looking ahead to how the company will navigate its substantial pipeline opportunities and legislative changes that could affect its growth trajectory. The company's strong six-month price return of 56.89% suggests growing market confidence, though InvestingPro analysis indicates the stock is currently trading above its Fair Value.
In other recent news, Bloom Energy reported significant developments impacting its financial outlook and market positioning. UBS analyst Manav Gupta maintained a Buy rating on Bloom Energy, with a price target of $33, citing the company's strong performance as it exceeded its 2024 revenue guidance with $1.47 billion in sales. TD Cowen analysts also revised their outlook, increasing the price target to $20, reflecting optimism about demand from data centers but maintaining a Hold rating due to concerns over certain financial disclosures and product backlog. In contrast, Redburn-Atlantic downgraded Bloom Energy from Neutral to Sell, lowering the price target to $10, due to concerns about the company's ability to meet earnings growth expectations amidst increased competition in the fuel cell sector.
Additionally, Bloom Energy announced a partnership with Conagra Brands (NYSE:CAG) to deploy its fuel cell technology at Conagra's Ohio facilities, under a 15-year power purchase agreement. This collaboration is projected to generate around six megawatts of electricity, covering a significant portion of the facilities' power needs and reducing greenhouse gas emissions by 19%. This move aligns with Conagra's sustainability goals and has been well-received by the market, reflecting investor confidence in Bloom Energy's growth trajectory. These developments underscore Bloom Energy's strategic initiatives in expanding its clean energy solutions and adapting to market challenges.
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