Why Bloom Energy Stock Sank Today

Core Viewpoint - Bloom Energy's stock price target has been raised by Bank of America Securities, but the analyst maintains an "underperform" rating, indicating limited upside potential despite the increase in target price [1][2]. Group 1: Analyst Insights - Analyst Dimple Gosai raised the price target for Bloom Energy by 50% to $39 per share, but left the "underperform" rating unchanged [1]. - Gosai commended Bloom's management for improved execution but described the revenue estimates through 2028 as "ambitious" and already reflected in the current stock price of $92 [2]. - The forecast includes a 40% annual growth in fuel cell shipments through 2028, contingent on Bloom securing significant new awards, rather than just fulfilling existing contracts [3]. Group 2: Financial Metrics - Bloom Energy's current stock price is $94.15, with a market capitalization of $23 billion [4][5]. - The stock is trading at 12 times trailing sales and an extremely high 1,190 times trailing earnings, suggesting that the stock is overvalued at its current price [5]. - The analyst warns of risks associated with muted order activity compared to positive media coverage, indicating a potential disconnect between perception and reality [5].