Bloom Energy falls as Mizuho downgrades the stock to “neutral” from “outperform”

There’s an immense need for power to fuel the AI data centers playing the starring role in driving up electricity prices.

Mizuho just isn’t sure that the high-flying fuel cell company Bloom Energy is well placed to provide it.

Analyst Maheep Mandloi cited the firm’s internal constraints on growth in lowering his rating on the stock to “neutral” from “outperform,” suggesting that Bloom will likely need to develop a bigger pipeline of customers before expanding its manufacturing footprint.

Still, he hiked his price target to $79 from $48 while downgrading the stock.

Last week, JPMorgan flagged that retail traders were beginning to sour on the shares, which had enjoyed a massive run-up that kicked into high gear thanks to a deal with Oracle announced in late July to supply power to data centers.

Wall Street is broadly negative on Bloom Energy, relative to most of the universe of the stocks the sell side covers. Its consensus rating, per analysts polled by Bloomberg, is just shy of 3.35. For reference, that’s a worse average rating than nearly 90% of the stocks in the S&P 500 (which Bloom is not a part of).

Jefferies downgraded the stock last week on the same day Bank of America analysts wrote, “We are still not buying into BE’s AI hype.” Nonetheless, most are still revising price targets higher to account for the stock’s move. But all that leaves the average price target well below where the shares are currently trading.