Morgan Stanley analyst David Arcaro maintained a Buy rating on Bloom Energy today and set a price target of $85.00.
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David Arcaro has given his Buy rating due to a combination of factors that highlight Bloom Energy’s strategic positioning and growth potential. The recent announcement of a $5 billion partnership with Brookfield Asset Management is a significant milestone, as it positions Bloom as the preferred onsite power provider for Brookfield’s global AI factories. This partnership not only validates Bloom’s technology and product fit for large-scale data centers but also provides visibility into potential customer volumes, which is crucial given the company’s planned manufacturing capacity expansion.
Furthermore, the partnership’s potential financial impact is promising. Although the agreement does not yet represent concrete orders, it suggests a strong future demand for Bloom’s solutions. Arcaro estimates that if Brookfield invests at a 250 MW annual pace, it could add substantial value to Bloom’s stock. Additionally, the anticipated power shortfall later in the decade presents a large addressable market opportunity for Bloom Energy, supporting a bullish outlook with potential growth to 3 GW annually by 2029.
According to TipRanks, Arcaro is a 5-star analyst with an average return of 15.9% and a 69.09% success rate. Arcaro covers the Utilities sector, focusing on stocks such as PG&E, Edison International, and IdaCorp.
In another report released yesterday, Susquehanna also maintained a Buy rating on the stock with a $105.00 price target.