Bloom Energy Corporation : Barclays Initiates Coverage With Equal-Weight Rating And Target Price $153

Reuters

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3 Reasons Investors Love Bloom Energy (BE)

Stock Story

Bloom Energy

-3.28%

Bloom Energy has been on fire lately. In the past six months alone, the company’s stock price has rocketed 372%, reaching $164.17 per share. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move.

Following the strength, is BE a buy right now? Or is the market overestimating its value? Find out in our full research report, it’s free.

Why Are We Positive On BE?

Working in stealth mode for eight years, Bloom Energy designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.

1. Skyrocketing Revenue Shows Strong Momentum

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Bloom Energy grew its sales at an incredible 19.1% compounded annual growth rate. Its growth surpassed the average industrials company and shows its offerings resonate with customers.

2. Increasing Free Cash Flow Margin Juices Financials

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

As you can see below, Bloom Energy’s margin expanded by 27.5 percentage points over the last five years. Bloom Energy’s free cash flow margin for the trailing 12 months was 7.4%.

Bloom Energy Trailing 12-Month Free Cash Flow Margin

3. New Investments Bear Fruit as ROIC Jumps

A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity).

We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Over the last few years, Bloom Energy’s ROIC has increased. This is a good sign, but we recognize its lack of profitable growth during the COVID era was the primary reason for the change.

Bloom Energy Trailing 12-Month Return On Invested Capital

Final Judgment

These are just a few reasons Bloom Energy is a high-quality business worth owning, and with the recent surge, the stock trades at 175.5× forward P/E (or $164.17 per share). Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

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Bloom Energy Shares Surge – Why Are Analysts Initiating Coverage On The Stock?

Stocktwits

Bloom Energy

-3.28%

Bloom Energy shares rallied on Wednesday after several brokerages initiated their coverage on the stock.

The company has seen several price target hikes recently as analysts remain confident on the company's outlook as well as upcoming fourth quarter results, due next week.

Coverage Initiated

Barclays on Wednesday initiated coverage of Bloom Energy with an ‘Equal Weight’ rating and $153 price target.

The company's solid-oxide fuel cells have emerged as a "compelling alternative" for on-site generation due to its declining costs, quick time to market, and ability to provide baseload power, the analyst told investors in a research note.

The firm said Bloom is positioned to benefit from rising onsite-power demand and strong hyperscaler momentum. However, the stock's valuation already prices in "meaningful scale-up toward," contended Barclays.

China Renaissance also initiated coverage of Bloom Energy with a ‘Buy’ rating and $207 price target.

Upbeat Analysts

Baird on Tuesday raised the firm's price target on Bloom Energy to $172 from $157 and kept an ‘Outperform’ rating on the shares. The firm updated its model after it previewed Q4 results where they expect guidance to be conservative but consensus achievable.

Clear Street analyst Tim Moore also raised the firm's price target on Bloom Energy to $80 from $68 and kept a ‘Hold’ rating on the shares ahead of the company's scheduled December quarter report on February 5.

Ahead of earnings, Clear Street has increased its assumption for a larger sales contribution from the American Electric Power (AEP) order in Wyoming and now believes Bloom could achieve about 500 MW of fuel cells for that site. As such, the firm increased its 2026 sales forecast by 2% and its 2027 sales forecast by 4%.

Q4 Earnings Ahead

Bloom Energy is expected to report fourth quarter revenue of $647.6 million according to Wall Street estimates, as per data from Fiscal.ai.

The company is expected to post a profit of $0.31 per share in the fourth quarter.

How Did Stocktwits Users React?

Retail sentiment around BE trended in ‘neutral’ territory amid ‘high’ message volume.

Shares in the company have jumped 618% over the past 12 months.

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Dj Bloom Energy Price Target Announced At $207.00/Share By China Renaissance

Reuters

Bloom Energy

-3.28%

Risk Warnings and Disclaimers

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Dj Bloom Energy Initiated At Buy By China Renaissance

Reuters

Bloom Energy

-3.28%

Risk Warnings and Disclaimers

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Dj Bloom Energy Price Target Announced At $153.00/Share By Barclays

Reuters

Bloom Energy

-3.28%

Risk Warnings and Disclaimers

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Dj Bloom Energy Initiated At Equal-Weight By Barclays

Reuters

Bloom Energy

-3.28%

Risk Warnings and Disclaimers

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Bloom Energy Corporation : Barclays Initiates Coverage With Equal-Weight Rating And Target Price $153

3 Reasons Investors Love Bloom Energy (BE)

Bloom Energy Shares Surge – Why Are Analysts Initiating Coverage On The Stock?

Dj Bloom Energy Price Target Announced At $207.00/Share By China Renaissance

Dj Bloom Energy Initiated At Buy By China Renaissance

Dj Bloom Energy Price Target Announced At $153.00/Share By Barclays

Dj Bloom Energy Initiated At Equal-Weight By Barclays

Risk Disclosure