BE Stock Recovers After 10% Selloff: Morgan Stanley Says Crusoe Project Pause Does Not Break AI Power Thesis

Crusoe put a 1.8 GW data center project in Wyoming on hold, which was expected to be powered by a mix of Bloom Energy's fuel cells and grid electricity.

• Morgan Stanley said in a note that it remains optimistic about the company's overall bullish thesis despite the pause. 
• The analyst maintained its ‘Overweight’ rating and $310 price target on the stock.
• Meanwhile, RBC Capital also reiterated its ‘Outperform’ rating and $335 price target on Bloom Energy.

Shares of Bloom Energy Corp. (BE) recovered in the overnight session after slipping the most in more than two months after a key data center project was paused.

BE stock fell nearly 10% on Wednesday after Crusoe announced that it had put a data center project in Wyoming on hold at the request of its customer. The facility was expected to be powered by a mix of Bloom Energy's fuel cells and grid electricity.

However, Morgan Stanley said in a note that it remains optimistic about the company's overall bullish thesis despite the development.

BE stock edged more than 1% higher at the time of writing.

The Crusoe Deal

Crusoe was working with Blackstone Inc.-backed energy company Tallgrass to develop a 1.8-gigawatt campus in Cheyenne, Wyoming, for an undisclosed tenant.

The project had planned to deploy 900 MW of behind-the-meter fuel cells from Bloom Energy, in addition to grid power.

“At the request of our customer, Crusoe has paused its development activities” on the site, the company said in a statement on Tuesday.

Wall Street Consensus On Bloom

Morgan Stanley said, according to TheFly, that while the paused project represented approximately $2.65 billion in revenue potential for Bloom Energy, it had been allocated from the 1 GW master supply agreement (MSA) signed with AEP in December 2024. The analyst said that it believes contractual protections within Bloom's agreement should help safeguard earnings over the planned delivery period.

Morgan Stanley maintained its confidence in Bloom's full-year and longer-term outlook, reiterating its positive investment thesis on the company. The firm continues to rate Bloom Energy as ‘Overweight’ and has a $310 price target on the stock.

Meanwhile, RBC Capital also reiterated its ‘Outperform’ rating and $335 price target on Bloom Energy, according to Investing.com.

BE Stock: Retail Stance

On Stocktwits, retail sentiment around BE stock remained in the ‘bearish’ territory amid ‘high’ message volumes at the time of writing.

One user said the stock was “totally oversold,” adding that “again, their backlog is massive - expecting another great quarter in July.”

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The company’s shares have surged 137.34% so far this year.

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