Latest news with #BloomEnergyCorp
Globe and Mail
5 days ago
- Business
- Globe and Mail
The Reason Analysts Are Bullish on Bloom Energy Stock
The world of energy stocks is changing quickly, as the ongoing development and adoption of artificial intelligence create a new need for energy infrastructure to be developed and implemented across the United States. This theme hasn't been circulated yet in investment communities or the mainstream financial media. Hence, investors have a chance to jump on the wave before it really gets started. With this in mind, the opportunities likely won't come from the current energy infrastructure setups, ruled by the traditional names in the space. The opportunity lies in identifying names that can enhance the efficiency and accessibility of this process for the hundreds of new data centers being built across the country, in response to the growing race for artificial intelligence. In this sense, investors can buy the shovels during a gold rush. That might be why Wall Street analysts recently decided to boost their views for shares of Bloom Energy Corp. (NYSE: BE). Considering the recent price action and market capitalization of this company, investors need to understand that analysts rarely boost valuations, and they often choose to go with larger, more established names. Raising the Stakes in Bloom Energy Being a $5.9 billion company places Bloom Energy out of the radar of most Wall Street analysts and large institutional investors alike. This gives retail investors (who know what to look for) an edge in really squeezing the potential upside in this company's future before the opportunity gets around to other players in the market. With this in mind, investors can put more emphasis on the fact that J.P. Morgan analyst Mark Strouse decided to upgrade his view on Bloom Energy stock from a Neutral stance to an Overweight one. Strouse's sentiment toward the stock changed, and so did his valuation. Where the previous price target was set for only $18 per share, the current valuation view is set for $33 instead, a significant jump that is as unusual from a big bank analyst as is the choice of a small company. From where Bloom Energy trades today, this target implies that investors can run up to 30% in additional upside potential in the future. Meeting this price target will require several factors, including recognition and a clear catalyst, one of which is already in place. With the United States investing more capital into the right infrastructure developments to accommodate data center growth, investors can come to expect some benefits from Bloom Energy sooner rather than later. Once these are made obvious to the rest of the market, recognition will likely follow. Still, by that time, it will be too late, as new investors will be chasing the stock price higher and higher. Understanding that the setup greatly favors the bulls, short sellers decided to decrease their exposure in Bloom Energy stock accordingly. Over the past month, 1.7% of Bloom Energy's short interest declined as an initial indication of bearish capitulation, since the recent Wall Street sentiment change could also help the stock close the gap between today's price and its 52-week high level of $29.8. If the call by Strouse is proven correct, this would also mean a new 52-week high breakout for Bloom Energy. At that point, it is expected that some institutional buyers (focused mainly on long-only momentum plays) will pour in to keep fueling a new move higher. The Market Pays Up for Bloom Energy All told, even the broader market is tagging along with Bloom Energy's future growth story. Because it trades at a price-to-book (P/B) ratio of up to 9.9x today, the stock now calls for a significant premium compared to the average valuation of 3.7x seen in the rest of the energy sector. Market forces will always be willing to overpay for the names believed to outperform the broader market and the peer group. This time, investors have a clear catalyst in place to have Bloom Energy fulfill those expectations in the future. When it comes to other factors at play for Bloom Energy, investors can dig into two main developments in the company's recent financial quarter. Revenue jumped by 38.6% over the year to deliver up to $326 million. As new contracts allow the business to scale, a higher gross profit margin of 27.2% was also achieved, a massive improvement from last year's 16.2%. As these two drivers continue to expand, it is reasonable to expect Bloom Energy's earnings per share (EPS) growth to continue and exceed expectations, which would not only validate this J.P. Morgan analyst's assessment but also attract new potential interest and news coverage. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
Globe and Mail
07-05-2025
- Business
- Globe and Mail
Mizuho Thinks This Buy-Rated Hydrogen Stock Can Surge 57% in 2025
Bloom Energy Corp. (BE) is a renewable energy company that generates and distributes electricity via its proprietary Bloom Energy Servers. The power generation platform is based on solid oxide fuel cells, and converts natural gas, biogas, or hydrogen into electricity without combustion, resulting in minimal emissions. Valued at $3.76 billion by market cap, Bloom Energy is a member of the small-cap Russell 2000 Index (RUT). About Bloom Energy Stock Bloom Energy has had a volatile year so far, dropping more than 26% YTD. The stock is down 34% in the last 3 months and 10.8% in the previous 5 days. Longer term, BE has gained 53% in the last 6 months, and 38.8% in a 52-week timeframe. Bloom Energy Reports Q1 Results Bloom Energy reported its first-quarter results on April 30, posting a loss of $23.8 million, or $0.03 per adjusted share. The loss was narrower than Wall Street's expected $0.07 per share deficit. Revenue of $326 million easily surpassed analysts' $292.2 million estimate. The company recorded solid 38% growth in its Product sector, 195% in the Installation sector, and 92% in the Electricity sector. Adjusted gross margin of 28.7% was up from 17.5% posted in the same quarter last year. Operating profit came to $13.2 million, reversing a loss of $30.7 million reported in Q1 2024. Bloom ended the quarter with a cash reserve of $794.75 million. The renewable energy company anticipates full-year revenue in the range of $1.65 to $1.85 billion in FY2025. Non-GAAP gross margin is expected at 29% while operating income is anticipated in the range of $135 to $165 million during the year. BE Stock is Upgraded by Mizuho On Monday, Mizuho upgraded Bloom Energy from a 'Neutral' rating to an 'Outperform' rating with a price target of $26, reflecting 57% upside from current levels. Mizuho cited a positive risk/reward outlook along with a re-rating chance due to new large orders on utilities, data centers, and more. Bloom enters into multiple long-term contracts with its clients where 100MW of product sales translates to more than $1 billion of commercial value. Analyst Maheep Mandloi expects demand for fuel cells to grow which should improve margins while easing free cash flow and downplaying the cost curve. Mandloi says that since combined gas cycle turbine plant (CCGTs) cost and lead time continue their upward trajectory, Bloom Energy's fuel cell costs appear attractive offer as a bridge or long-term solution. Since CCGTs are sold out for the next 4-7 years, this leads to transmission upgrades being halted for 7-11 years in some states. Bloom's fuel cells are capable of handling the power demand today and its lower emissions make it a quick and cleaner alternative to backup generators. Additionally, Mandloi highlighted that Bloom has successfully managed tariffs, as reflected in their reaffirmed FY 2025 outlook, despite a roughly 100 basis point impact on gross margin due to reciprocal tariffs. Wall Street's Take on BE Analysts are bullish overall on the hydrogen stock, with a consensus 'Moderate Buy' rating and a mean price target of $23.59 - not quite as ambitious as Mizuho's new target.
Yahoo
01-05-2025
- Business
- Yahoo
Bloom Energy Corp (BE) Q1 2025 Earnings Call Highlights: Record Revenue and Positive EPS Mark a ...
Revenue: $326 million, up 39% year-over-year. Gross Margin: 28.7%, over 1,000 basis points higher than Q1 2024's 17.5%. Operating Income: Positive $13.2 million, compared to a $30.7 million deficit in Q1 2024. EBITDA: $25.2 million, versus a negative $18.2 million in Q1 2024. EPS: $0.03 per share, compared to a loss of $0.17 per share a year ago. Service Profitability: Profitable for the fifth consecutive quarter. 2025 Revenue Guidance: $1.65 billion to $1.85 billion. 2025 Non-GAAP Gross Margin Guidance: Approximately 29%. 2025 Non-GAAP Operating Income Guidance: Approximately $150 million. Cash Flow from Operations: Expected to be around the same levels as 2024. CapEx: Expected to be around the same levels as 2024. Warning! GuruFocus has detected 5 Warning Signs with BE. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bloom Energy Corp (NYSE:BE) reported record revenue for the first quarter of 2025, marking the best first quarter in the company's 24-year history. The company achieved its first-ever positive Q1 non-GAAP EPS and its fifth consecutive quarter of service profitability. Bloom Energy Corp (NYSE:BE) has a diversified customer base across sectors and geographies, which provides resilience against economic fluctuations. The company is not dependent on China for its supply chain, which helps mitigate the impact of tariffs. Bloom Energy Corp (NYSE:BE) is experiencing strong demand from AI data centers and large industrial operations, with no slowdown in these sectors. The consumer-facing segment of Bloom Energy Corp (NYSE:BE)'s commercial and industrial business may experience delays in decision-making due to economic uncertainty. There is a potential 100 basis point impact on gross margin due to tariffs, although the company is working to mitigate this. The departure of CFO Dan Berenbaum could create temporary uncertainty in financial leadership. The company faces challenges in expanding its international presence beyond Korea, with growth still off a small base. Some projects may experience timing shifts due to supply chain issues and policy uncertainties, potentially affecting revenue recognition. Q: Are you seeing any impact on the timing of pipeline conversion for data centers due to supply chain issues or policy uncertainty? Also, how are tariffs affecting your margin guidance? A: K.R. Sridhar, CEO: We have strong confidence in our ability to meet guidance despite potential project timing shifts. The demand for on-site power is clear, and we are a viable solution. Regarding tariffs, we expect up to a 100 basis point impact on gross margin, but we are committed to maintaining our 29% margin guidance through cost reduction efforts. Q: Can you discuss the role of partnerships with utilities versus direct customer engagements in driving product deployment in 2025 and 2026? A: K.R. Sridhar, CEO: We prefer working with utilities as they manage customer relationships and can procure our products to supply power. We are actively partnering with utilities like AEP and others. However, we are also open to direct engagements with customers, especially when utilities prefer not to be involved. Q: How do you view the resilience of your supply chain, especially concerning critical materials amid trade tensions? A: K.R. Sridhar, CEO: Our supply chain is resilient, with no critical materials sourced from contested zones or China. We have a diverse and battle-tested supply chain strategy, ensuring we can scale rapidly without disruptions. Q: Can you provide more color on the domestic commercial and industrial (C&I) power demand and how it's translating into orders? A: K.R. Sridhar, CEO: We see strong demand for islanded power solutions due to long interconnection times. Our ability to offer load-following microgrids without batteries is a significant advantage. The growth in manufacturing facilities and AI-related infrastructure is driving demand, while consumer-facing businesses may delay decisions due to economic uncertainty. Q: How are you managing the potential impact of tariffs on your operations and financials? A: K.R. Sridhar, CEO: We have conducted a detailed analysis of our supply chain and are confident in mitigating the impact of tariffs through strategic sourcing and cost reduction initiatives. We remain committed to our margin guidance despite these challenges. Q: What is the status of your international expansion efforts outside the U.S. and Korea? A: K.R. Sridhar, CEO: We are focusing on strategic markets in Europe, such as Italy, Germany, and the U.K., and in Asia, particularly Taiwan. These regions offer significant growth opportunities due to their power needs and industrial growth. Q: Can you elaborate on the potential regulatory bottlenecks affecting utility partnerships and deal flow? A: K.R. Sridhar, CEO: Regulatory processes can cause temporary delays, but utilities like AEP are confident in their project pipelines. Customers and regulators understand the need for on-site power solutions, and we expect these issues to be resolved as the market evolves. Q: How do you ensure the longevity and reliability of your energy servers in long-term contracts like the one with Conagra? A: K.R. Sridhar, CEO: Our energy servers have a long operating life, with fuel cells typically replaced every five years. This ensures that customers receive the latest technology and maintain reliable power throughout the contract duration. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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San Francisco Chronicle
30-04-2025
- Business
- San Francisco Chronicle
Bloom Energy: Q1 Earnings Snapshot
SAN JOSE, Calif. (AP) — SAN JOSE, Calif. (AP) — Bloom Energy Corp. (BE) on Wednesday reported a loss of $23.8 million in its first quarter. On a per-share basis, the San Jose, California-based company said it had a loss of 10 cents. Earnings, adjusted for one-time gains and costs, were 3 cents per share. The results exceeded Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for a loss of 7 cents per share. The developer of fuel cell systems posted revenue of $326 million in the period, which also topped Street forecasts. Eight analysts surveyed by Zacks expected $292.2 million. Bloom Energy expects full-year revenue in the range of $1.65 billion to $1.85 billion. Bloom Energy shares have declined 17% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $18.36, an increase of 65% in the last 12 months. _____
Yahoo
06-04-2025
- Business
- Yahoo
Why Bloom Energy Corp. (BE) Performed Worst On Friday?
We recently published a list of . In this article, we are going to take a look at where Bloom Energy Corp. (NYSE:BE) stands against other Friday's worst performing stocks. The stock market suffered a bloodbath anew on Friday as investors digested news of a growing trade war, with China making good on its promise with a steep tariff on US goods. As of 2:55 PM, the S&P 500 lost 5.47 percent of its value, the tech-heavy Nasdaq fell 5.37 percent, and the Dow Jones was down by 5.09 percent. Following President Donald Trump's imposition of hefty tariffs on all imports to the US, China on Friday struck back with a 34-percent tariff on US goods. The tariffs will begin on April 10. Ten individual stocks mirrored a broader market pessimism, recording steep intra-day losses. In this article, let us explore Friday's worst intra-day performers and the reasons behind their decline. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume. A bird's eye view of a power generation platform with a power plant in the background. Bloom Energy dropped its share prices for a third day on Friday, losing 14.55 percent at intra-day trading at $16.53 apiece as investor sell-off was weighed down by the overall market pessimism. Just recently, BE entered into a 15-year power purchase agreement with Conagra Brands Inc. (NYSE:CAG) for the deployment of BE's fuel cell technology at CAG's facilities in Ohio. In a statement on Tuesday, CAG said that the PPA will see approximately 6 megawatts and provide combustion-free electricity generation, supplying approximately 70 percent to 75 percent of the electricity needs at the Troy and Archbold facilities, while also projecting a 19-percent decrease in their greenhouse gas emissions. The initiative was in line with CAG's 2030 science-based greenhouse gas reduction target. 'We are delighted to partner with Conagra Brands, a leading branded food company,' said BE C&I Sector Leader Adam Colling. 'Our collaboration underscores Bloom's commitment to providing clean and reliable energy solutions and driving economic value in grid-constrained regions like Ohio and the greater Midwest.' Overall, BE ranks 5th on our list of Friday's worst performing stocks. While we acknowledge the potential of BE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
