Bloom Energy (BE): Mixed Analyst Outlook Amid Growth and Valuation Concerns

Analyst Ratings - Bloom Energy Corporation (NYSE:BE) has received mixed views from analysts, with Morgan Stanley maintaining a Buy rating and a price target of $155, while BTIG also holds a Buy rating with a target of $145 [1] - Conversely, Daiwa initiated coverage with a Hold rating and a price target of $98, indicating a more neutral stance [1] - BofA Securities raised its price target from $26 to $39 but kept an Underperform rating, citing improvements in execution and demand but remaining cautious [2] Growth Projections - BofA expects Bloom's megawatt capacity to grow at approximately a 40% compound annual rate through 2028, supported by a 44.5% revenue growth over the past year and an estimated 27% increase for the current fiscal year [2] - The company’s backlog figures for the fourth quarter are seen as a critical indicator of whether order activity can sustain its growth narrative [3] Valuation Concerns - Bloom Energy currently trades at high multiples, with a P/E ratio exceeding 1,400 and an EV/EBITDA multiple near 167, raising concerns about its valuation [3] - Analysts suggest that maintaining growth beyond 2027 will likely depend on securing large new contracts, which introduces execution risk [3] Company Overview - Bloom Energy designs and installs solid-oxide fuel cell systems that provide on-site power, utilizing fuels such as natural gas, biogas, or hydrogen [4] - The company’s core product, the Bloom Energy Server, generates electricity through an electrochemical process, and it also offers the Bloom Electrolyzer for efficient hydrogen generation [4] - Bloom serves a diverse range of sectors, including utilities, data centers, healthcare, retail, agriculture, universities, biotechnology, and manufacturing [4]