Jefferies lifted its price target on BE to $264 from $229 while keeping a Hold rating.
- The new price target, however, is below the stock’s trading price as of Tuesday.
- The Jefferies note followed RBC Capital’s Monday reaffirmation of an Outperform rating and $335 target.
- Last week, after reports that Oracle sent a force majeure notice to the project’s developer over a delayed gas pipeline and air permits, Bloom said it had spoken with Oracle and that the roughly 2.4-gigawatt contract remains intact.
Bloom Energy Corp. (BE) shares jumped 11% on Tuesday, reversing a steep Monday decline as investors returned to the fuel-cell maker amid fresh analyst commentary and renewed interest in on-site power for artificial-intelligence data centers.
The stock on Tuesday clocked its best day since August. Peers such as FuelCell Energy and Plug Power also bounced 5% and 3%, respectively, recovering from a sectorwide selloff the previous day.
Analysts Weigh In On BE
Jefferies lifted its price target to $264 from $229 while keeping a ‘Hold’ rating. The new target, however, is still below Tuesday’s closing price.
Jefferies analyst Julien Dumoulin-Smith said Bloom’s on-site power case still holds even as some projects run late. He pointed to a $25 billion Brookfield financing framework, a $2.65 billion firm order from American Electric Power, and an expected 2 gigawatts of installed capacity by year-end. The premium multiple, he argued, is “reasonable today with a window to book onsite generation for speed-to-power.” He also added that the shares already look fully valued at current levels.
The note followed RBC Capital’s Monday reaffirmation of an Outperform rating and $335 target. RBC highlighted Bloom’s Fremont, California plant expansion, which adds about 158,000 square feet as the company scales annual capacity toward 2 gigawatts by the end of 2026. Mizuho earlier this month raised its target to $351.
BE Deals, Demand
Investors still treat Bloom as a volatile bet on data-center power shortages. In April, Bloom said Oracle plans to buy as much as 2.8 gigawatts of its fuel cells, with 1.2 gigawatts already under contract. Project Jupiter in Doña Ana County, New Mexico, accounts for most of that larger figure. Bloom would supply up to 2.45 gigawatts there for an on-site microgrid that replaced earlier plans for gas turbines and diesel generators.
Last week, after reports that Oracle sent a force majeure notice to the project’s developer over a delayed gas pipeline and air permits, Bloom said it had spoken with Oracle and that the roughly 2.4-gigawatt contract remains intact. The company said it still expects to execute on Oracle’s planned timeline.
How Did BE Retail Traders React?
On Stocktwits, retail sentiment around BE stock stayed ‘bullish’ over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.
A Stocktwits user said the whole rally driven by AI demand is due for a correction after Micron reports earnings on Wednesday.
View this Stocktwits post
BE stock has gained 235% year-to-date.
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