What Happened?
Shares of electricity generation and hydrogen production company Bloom Energy (NYSE:BE) jumped 3% in the afternoon session after an analyst at Susquehanna raised the firm's price target on the stock.
The investment firm boosted its price objective on the fuel-cell manufacturer to $30 from $26, while maintaining a "Positive" rating on the shares. A price target is the projected price level an analyst believes a stock will reach in a certain period. This new target suggests a potential upside of nearly 16% from the stock's previous closing price, signaling renewed confidence from the analyst in the company's outlook.
After the initial pop the shares cooled down to $25.70, up 2.8% from previous close.
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What Is The Market Telling Us
Bloom Energy’s shares are extremely volatile and have had 66 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock gained 15.1% on the news that J.P. Morgan upgraded the stock. The bank raised its rating on the fuel-cell manufacturer to "overweight" from "neutral" and significantly increased its price target to $33 from $18. This new target suggests a potential upside of nearly 36% from the stock's previous closing price. J.P. Morgan's positive outlook is based on the idea that elevated pricing and long lead times for competing gas turbines could push more customers toward Bloom's fuel cell solutions, especially with the help of fuel cell tax credits. The investment bank believes this could lead to stronger product margins for Bloom Energy, driven by higher factory utilization and increased pricing power.
Bloom Energy is up 10% since the beginning of the year, but at $25.70 per share, it is still trading 13.8% below its 52-week high of $29.81 from January 2025. Investors who bought $1,000 worth of Bloom Energy’s shares 5 years ago would now be looking at an investment worth $1,504.
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