Bank of America Securities analyst Dimple Gosai has reiterated their bearish stance on BE stock, giving a Sell rating on September 24.
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Dimple Gosai’s rating is based on several factors that raise concerns about Bloom Energy’s current market position and future prospects. The recent filing for a 900MW fuel cell project in Wyoming, while significant, is not a binding order, and approvals could take a considerable amount of time. This filing is more about positioning rather than a confirmed commitment, as it does not align neatly with the initial phase of the project and lacks exclusivity in the power mix.
Furthermore, the market reacted positively to the filing, but this enthusiasm may be premature as critical questions about offtake commitments, financing, and technology selection remain unresolved. The presence of well-capitalized alternative energy projects in the region underscores the competitive environment Bloom Energy faces. Until these uncertainties are addressed, the filing should be viewed as a credibility boost rather than a substantial addition to Bloom’s backlog, justifying the Sell rating.
In another report released on September 24, Jefferies also downgraded the stock to a Sell with a $31.00 price target.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BE in relation to earlier this year.