BE Stock Extends Selloff After Q3 Print, But Morgan Stanley Sees A Production Ramp Ahead

• Morgan Stanley raised its price target to $335 from $310 while maintaining an ‘Overweight’ rating, according to The Fly.
• Oppenheimer warned that cash flow concerns could pressure the stock.
• Bloom Energy raised its full-year 2026 revenue guidance to $4.4 billion – $4.6 billion, from its earlier guidance of $3.9 billion – $4.2 billion

Shares of Bloom Energy (BE) extended their post-earnings selloff in morning trade on Friday, but Morgan Stanley remained bullish on the fuel-cell maker’s growth prospects, citing growing confidence in its ability to ramp up production and convert customer demand into sales.

According to The Fly, the brokerage raised its price target to $335 from $310 and maintained an ‘Overweight’ rating, implying a potential 60% upside from current levels.

BE shares were down 12% at the time of writing, having slumped 8.7% in the previous session. The stock is also tracking its third straight weekly loss.

Morgan Stanley Raises Shipment Forecast

While Bloom Energy reported a sharp increase in third quarter (Q3) revenue and raised its annual outlook, concerns over cash flow and heavy spending weighed on investor sentiment.

The company reported adjusted earnings of $0.94 per share, exceeding Wall Street’s $0.69 estimates, according to Fiscal.ai. Q3 revenue came in at $1.24 billion compared to consensus forecast of $1.07 billion. 

Bloom Energy raised its full-year 2026 revenue guidance to $4.4 billion – $4.6 billion from its earlier guidance of $3.9 billion – $4.2 billion. It also increased adjusted earnings outlook to $3.10 – $3.40 per share, from $2.55 – $2.85 per share.

However, Bloom Energy reported its highest-ever capital expenditure, which led to a negative net cash flow of about $180 million.

Following the results, Morgan Stanley raised its fuel-cell power systems shipments forecast to 2.1 gigawatts (GW) in 2027 and 3.7 GW in 2028, up from its previous estimates of 1.8 GW and 3.1 GW, respectively.

Oppenheimer Flags Cash Flow Concerns

Oppenheimer maintained its ‘Perform’ rating, adding that it remains impressed by Bloom’s rapid growth and its ability to provide reliable power quickly with lower emissions. The firm also highlighted Bloom’s carbon capture opportunity, which management estimated could represent a $1 trillion market.

However, Oppenheimer warned that cash flow concerns could pressure the stock, particularly after a $430 million increase in customer assets, until the company demonstrates how quickly those investments generate cash.

Retail Turns ‘Extremely Bullish’ On BE

Retail sentiment surrounding BE on Stocktwits turned ‘extremely bullish’ from ‘neutral’ over the past 24 hours, amid a 600% surge in message volumes.

Users remained positive despite the cash burn, highlighting production ramp up.

BE shares have seen heavy buying interest so far this year, gaining about 94%.

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