ubs reiterates buy rating on bloom energy stock amid new contracts

On Wednesday, UBS analysts reaffirmed a Buy rating for Bloom Energy Corp . (NYSE: NYSE:BE), maintaining a price target of $29.00. The stock, currently trading at $20.44 with a market capitalization of $4.74 billion, shows significant potential according to InvestingPro data, though it’s currently trading above its Fair Value. This decision follows reports of regulatory approval for AEP Ohio to deploy Bloom Energy’s on-site solid oxide fuel generators at Amazon (NASDAQ:AMZN) Web Services (AWS) and Cologix data centers. The company’s strong financial position is evident in its healthy current ratio of 3.44, indicating robust liquidity to support these major projects.

The Public Utilities Commission of Ohio (PUCO) has authorized AEP Ohio to construct these data centers to address increasing energy demands from tech infrastructure, while also alleviating pressure on the PJM grid. With this approval, AWS and Cologix will finance the new fuel cell installations, with contracts spanning six years for AWS and fifteen years for Cologix.

Amazon has already invested $6 billion in its Ohio data infrastructure from 2018 to 2023 and plans an additional $8 billion investment by 2029. AEP anticipates a 7-10 year timeline to fully upgrade the transmission network to support these developments.

UBS analysts expressed optimism about Bloom Energy’s prospects, stating that the company is well-positioned to achieve greater market penetration as AWS and other tech giants expand their data center projects. The analyst highlighted Bloom Energy’s time-to-power advantage and the potential for collaboration with other utilities, as the current deal with AEP is not exclusive.

In other recent news, Bloom Energy Corporation reported its first-quarter earnings for 2025, revealing a significant revenue increase of 39% year-over-year, reaching $326 million, which exceeded analysts’ estimates. The company also achieved its first positive Q1 non-GAAP earnings per share of $0.03, surpassing the expected loss of $0.07. This strong performance was largely driven by a repowering-related contract and robust product revenues. In addition, Bloom Energy reaffirmed its full-year guidance, projecting revenue between $1.65 billion and $1.85 billion, with a non-GAAP gross margin of approximately 29%.

In another development, BMO Capital Markets maintained its Market Perform rating on Bloom Energy with a price target of $18.00. This comes as American Electric Power (NASDAQ:AEP) discussed the positive implications of Ohio’s HB15 legislation on their potential agreement with Bloom Energy. Meanwhile, BTIG reiterated a Buy rating on Bloom Energy, maintaining a $30.00 price target, citing the company’s strong financial results and strategic control over its supply chain.

The recent stockholder meeting saw the re-election of three board members and the approval of executive compensation and the ratification of Deloitte & Touche LLP as the company’s auditor. However, a proposed amendment to the company’s certificate of incorporation did not pass. These developments reflect Bloom Energy’s ongoing strategic initiatives and its ability to navigate regulatory and market challenges effectively.

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