TD Cowen analyst Jeff Osborne has maintained their neutral stance on BE stock, giving a Hold rating today.
Geoff Osborne has given his Hold rating due to a combination of factors that suggest a balanced outlook for Bloom Energy. While the company has achieved profitability this quarter and reported record revenues for the full year, the recent fourth-quarter results fell short of expectations. The departure of the CFO and the light guidance for the upcoming year have caused investor focus to shift towards potential management and operational uncertainties. Additionally, although datacenters present a significant growth opportunity, it is not immediately clear why Bloom Energy will be the chosen provider for these projects, nor is it evident that these opportunities will materialize within the 2024-2025 timeline.
Osborne’s cautious stance is further supported by the acknowledgment of risks associated with larger projects, which are prone to delays and extend the time required to complete, thus adding uncertainty to the guidance. The transition in Korea’s legislative environment and the departure of key executives, including the head of sales, further compound the company’s challenges. Additionally, there is uncertainty around the Investment Tax Credit (ITC), which could pose mid-term risks to the company’s financials. Despite these concerns, Osborne notes that the company has a robust pipeline of projects and expresses confidence in Bloom Energy’s potential wins in the U.S. and Korea, although the timing of these projects remains uncertain.
In another report released today, J.P. Morgan also downgraded the stock to a Hold with a $14.00 price target.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
Read More on BE:
