Michael Blum, an analyst from Wells Fargo, maintained the Hold rating on Bloom Energy (BE – Research Report). The associated price target is $12.00.
Michael Blum has given his Hold rating due to a combination of factors that include a downward adjustment in Bloom Energy’s financial estimates and a more cautious stance on their growth projections for 2025 and beyond. Despite recognizing the potential in Bloom Energy’s focus on the data center market, especially those requiring high power such as AI data centers, there are uncertainties regarding the timing and execution of revenue-generating projects. The reduced visibility into future sales, particularly with the noted interest but uncertain timing in the AI data center sector, contributes to the cautious outlook.
Moreover, Blum has lowered the price target for Bloom Energy’s stock from $17 to $12 per share after revising the company’s EBITDA estimates downward for 2024 and 2025, as well as moderating the longer-term EBITDA growth forecast. These revisions are based on the company’s guidance and are reflected in a new valuation that incorporates a discounted cash flow model and a target EV/EBITDA multiple derived from peer comparisons. Additionally, the report mentions the company’s expectation of flat to potentially lower revenues in the first quarter of 2024 and only a moderate increase in the first half of the year compared to 2023, further supporting the Hold rating.
In another report released on February 16, TD Cowen also maintained a Hold rating on the stock with a $10.00 price target.
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Based on the recent corporate insider activity of 47 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.
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