Bank of America Securities analyst Dimple Gosai maintained a Sell rating on Bloom Energy today and set a price target of $26.00.
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Dimple Gosai has given his Sell rating due to a combination of factors impacting Bloom Energy’s financial outlook. Despite a strong third-quarter performance with significant revenue growth and margin improvements, much of this success is attributed to the Brookfield partnership, which primarily serves as a financing mechanism rather than a sustainable growth strategy. This reliance on external capital raises concerns about Bloom’s ability to independently convert its pipeline into orders and maintain long-term economic stability.
Additionally, while the Brookfield deal provides immediate revenue visibility, it also introduces complexities such as capital intensity and deferred profits, which obscure the true project economics. The exclusivity granted to Brookfield may limit Bloom’s flexibility to engage with other partners as the demand for AI power solutions expands globally. These uncertainties, coupled with ongoing challenges in cash flow management and a high net debt to equity ratio, contribute to the cautious outlook and the Sell rating assigned by Gosai.
According to TipRanks, Gosai is an analyst with an average return of -36.5% and a 53.19% success rate. Gosai covers the Technology sector, focusing on stocks such as NEXTracker, Inc. Class A, First Solar, and Array Technologies.
In another report released on October 14, Jefferies also maintained a Sell rating on the stock with a $31.00 price target.