Bloom Energy, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Dushyant Ailani from Jefferies maintained a Sell rating on the stock and has a $31.00 price target.
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Dushyant Ailani has given his Sell rating due to a combination of factors surrounding Bloom Energy’s current and future prospects. One of the primary concerns is the lack of clarity regarding the timing and scale of the partnership with Brookfield Asset Management, which plans to invest up to $5 billion in deploying Bloom’s solid oxide fuel cells (SOFCs). The uncertainty about when and how extensively these deployments will occur raises questions about Bloom’s ability to meet future sales and capacity expectations.
Another factor influencing the Sell rating is the company’s backlog and capacity expansion plans. While there is an expectation for significant backlog additions to support future sales, the current figures do not align with these expectations. Additionally, Bloom Energy’s reliance on “book and turn” sales raises doubts about its ability to achieve the necessary backlog growth. The potential for capacity expansion beyond the planned 2GW by the end of 2026 is also uncertain, adding to the concerns about Bloom’s future performance and investor confidence.
In another report released on October 1, Bank of America Securities also reiterated a Sell rating on the stock with a $24.00 price target.