Bloom Energy soars amid parade of post-earnings target hikes

Better-than-expected earnings after the close yesterday kicked off a giant rally in Bloom Energy shares, as results from the AI energy and momentum play received a mixture of excitement and skepticism — there were a lot of questions about details of the company’s recently announced deal with Brookfield Asset Management — from Wall Street analysts.

Several raised price targets, but they also remained neutral on the stock after an incredible run over the last year that has pushed valuation metrics to extremely elevated levels. (HSBC did, however, slap a “buy” on the shares.)

Mizuho (Neutral, PT $79 -> $89): “We also come away constructive on their Brookfield deal (given wider nature beyond just fuel cell delivery), but await additional info on first sales. Our capacity expansion and revenue model is largely unchanged long term. We increase our price-target by 13% to $89 due to strong bookings and operating leverage.”

Clear Street (Hold, PT $43 -> $50): “We maintain our Hold rating because of valuation and the stock’s strong relative outperformance since we launched coverage 12 months ago (BE has outperformed the Russell 2000 Index by 1,064% since 10/31/24). We would like to see more incremental large orders from Oracle, AEP, Brookfield or AWS. We also deem the stock’s risk/reward not compelling enough here to warrant a Buy rating. However, we continue to like BE’s value proposition of its quicker time to power-up solutions and underlying sales growth tailwinds from datacenters & semiconductor manufacturing.”

BMO (Market Perform, PT $97 -> $136): “Bloom Energy beat 3Q estimates handily as it appears the company has already booked revenue for at least 1 if not more projects from its recent strategic agreement with Brookfield that was announced on October 13... That said, BE now trades at 26x our 2027E EBITDA AND assumes full utilization of 2 GWs for FY 2027. Our updated target is $136/share, and we remain Market Perform.”

Bank of America Securities (Underperform, PT $26): “A solid 3Q topline and margin beat (revenue $519M, +57% YoY; GM 30.4%), driven by AI-linked data-center deployments and early Brookfield JV projects. While MW growth and FY25 guidance upside validate commercial traction, we see this largely priced in amid consensus expectations for accelerating AI power demand. The quarter does little to resolve uncertainty around true project economics, cash conversion, and sustainability of Brookfield-driven volumes.”

RBC (Outperform, PT $123->$143): “We believe their remains continued positive demand momentum and believe BE is still in the very early stages of seeing broader adoption. PT to $143 from $123 on estimate revisions and multiple expansion. We believe the long term upside opportunity could be much greater with broader adoption.”

JPMorgan (Overweight, PT $90->$129): “While the stock has significantly outperformed over the past few months, we maintain our Overweight rating and believe that additional contract announcements should provide further positive catalysts and potentially increased visibility into our unit shipment vs margin sensitivity analysis (see below). Our [year-end 2026] price target goes to $129, from $90.”

HSBC (Hold->Buy, PT $100->$150): “Upgrade to Buy (from Hold) and raise [target price] to USD150 (from USD100). The increase in our [discounted cash flow-derived target price] is driven by the increase in our estimates, with our target based on an exit multiple assumption of 20x (unchanged) for our estimates beyond 2031 ... Bloom currently trades at 13x EV/sales versus its trailing two-year average of 3.4x per Bloomberg. We believe a premium multiple is warranted by the company’s exposure to secular growth themes of AI data centers and hydrogen, and improving margins and cash flow.”