Analyst Dushyant Ailani of Jefferies maintained a Buy rating on Bloom Energy (BE – Research Report), with a price target of $16.00.
Dushyant Ailani has given his Buy rating due to a combination of factors surrounding Bloom Energy’s recent performance and future prospects. Despite Bloom Energy missing its sales and margin targets in the first quarter, which was attributed to a higher mix of sales in Korea that resulted in lower average selling prices and volumes, Ailani seems to see potential in the company’s reallocation strategy. The unexpected cancellation of the AWS project, which could have been a cause for concern, was mitigated by Bloom Energy’s efficient reallocation of servers to other Amazon sites, showcasing the company’s adaptability and resilience in the face of challenges.
Moreover, Ailani’s optimism is fueled by the company’s expansion into powering additional data centers, such as the recent announcement regarding a significant 30MW project for an Intel data center. This move indicates a growing momentum in the data center sector, which is a positive sign for Bloom Energy’s future growth. The focus on this segment is likely to contribute to the company’s revenue stream and market position, solidifying Ailani’s Buy recommendation as he remains cautiously optimistic about the company’s potential in this area.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $22.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BE in relation to earlier this year.
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Bloom Energy (BE) Company Description:
Bloom Energy Corp. engages in the manufacture and installation of on-site distributed power generators. Its product, Bloom Energy Server, converts standard low-pressure natural gas or biogas into electricity through an electrochemical process without combustion. The company was founded by K. R. Sridhar, John Finn, Jim McElroy, Matthias Gottmann, and Dien Nguyen on January 18, 2001 and is headquartered in San Jose, CA.
