Shares of Bloom Energy (NYSE:BE) were up nearly 7% on Friday morning, as JPMorgan analyst Mark Strouse turned bullish, saying the sell-off in the stock seems overdone. The analyst believes that investors can take advantage of the pullback (down 45% since mid-February) in the stock to add positions, with the company expected to be “a long-term beneficiary of the energy transition.”
Bloom Energy offers solid oxide technology that converts natural gas, biogas, or hydrogen into electricity without combustion.
Strouse upgraded the stock to a Buy from Hold and increased the price target to $22 from $20. The analyst cited several potential catalysts for Bloom Energy stock, including the upcoming investor day, contract announcements, continued efficiency efforts in the Fremont facility, and more details about the benefits from the Inflation Reduction Act.
Earlier this month, the company reported a lower-than-expected Q1 loss of $0.22 per share compared to analysts’ estimate of a $0.23 loss per share and narrower than a loss per share of $0.32 in the prior-year quarter. The bottom line gained from a 37% rise in revenue to $275 million.
Bloom Energy shares plunged nearly 13% on May 11 in reaction to the company’s announcement of a $550 million offering of green convertible notes due 2028.
Is Bloom Energy a Good Stock to Buy?
Wall Street’s Moderate Buy consensus rating on Bloom Energy is based on four Buys and five Holds. The average price target of $25.22 implies nearly 85% upside.
