BE Stock Soars Overnight On S&P 500 Inclusion: Analyst Sees Upside Of Over 28%

UBS analyst Manav Gupta raised the price target on Bloom Energy stock to $325 from $300 and maintained a ‘Buy’ rating on the shares, implying an upside of more than 28% from its last close.

• On Friday, the S&P 500 announced that BE stock would join the index on Sept. 21. 
• Gupta said, as per The Fly, that historically, a stock’s inclusion in the S&P 500 has resulted in a meaningful increase in passive ownership. 
• BE stock also has the advantage of being the first energy stock to join the index since 2022.

Shares of Bloom Energy Corp. (BE) soared nearly 7% higher overnight late Monday after closing up 7.35% on Friday after its inclusion in the S&P 500 index for the third quarter. 

Meanwhile, UBS analyst Manav Gupta raised the price target on BE stock to $325 from $300 and maintained a ‘Buy’ rating, implying upside of more than 28% from its last close. 

How Will S&P 500 Inclusion Help BE Stock?

Gupta said, as per The Fly, that historically, a stock’s inclusion in the S&P 500 has resulted in a meaningful increase in passive ownership. Companies included in the index see an increase in share purchases from index funds. The prestige of inclusion alone can result in higher prices. 

The analyst added further that the inclusion is "a significant positive catalyst for the stock."

The Only Energy Company Added To S&P 500 Since 2022

BE stock also has the advantage of being the first energy stock to join the index since 2022. 

Cheniere Energy Inc. (LNG) was another energy stock that was touted to be included in the S&P 500, but ultimately did not make the cut. 

BE stock will begin trading as part of the S&P 500 from Sept. 21.

BE Stock: Retail Stance

On Stocktwits, retail sentiment around BE stock was ‘bullish’ at the time of writing, amid ‘high’ message volumes. 

One user said, “$BE hot stick another 7% up. Look for new high soon.”

Another user said, “$BE people are underestimating this. It’s going to 1-2k year from now. Been in since 50 around this time last year  and people called me crazy saying 250 a year from then.”

BE stock is up more than 156% so far this year. 

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