Bloom Energy Shares Surge – Why Are Analysts Initiating Coverage On The Stock?

Brokerages like Barclays and China Renaissance initiated coverage on Bloom Energy.

• Barclays said Bloom is positioned to benefit from rising onsite-power demand and strong hyperscaler momentum.
• Baird on Tuesday said it has updated its model after it previewed Q4 results where it expects guidance to be conservative but consensus achievable. 
• Bloom Energy is expected to report its fourth quarter results next week. 

Bloom Energy shares rallied on Wednesday after several brokerages initiated their coverage on the stock. 

The company has seen several price target hikes recently as analysts remain confident on the company's outlook as well as upcoming fourth quarter results, due next week.

Coverage Initiated

Barclays on Wednesday initiated coverage of Bloom Energy with an ‘Equal Weight’ rating and $153 price target. 

The company's solid-oxide fuel cells have emerged as a "compelling alternative" for on-site generation due to its declining costs, quick time to market, and ability to provide baseload power, the analyst told investors in a research note. 

The firm said Bloom is positioned to benefit from rising onsite-power demand and strong hyperscaler momentum. However, the stock's valuation already prices in "meaningful scale-up toward," contended Barclays.

China Renaissance also initiated coverage of Bloom Energy with a ‘Buy’ rating and $207 price target.

Upbeat Analysts

Baird on Tuesday raised the firm's price target on Bloom Energy to $172 from $157 and kept an ‘Outperform’ rating on the shares. The firm updated its model after it previewed Q4 results where they expect guidance to be conservative but consensus achievable. 

Clear Street analyst Tim Moore also raised the firm's price target on Bloom Energy to $80 from $68 and kept a ‘Hold’ rating on the shares ahead of the company's scheduled December quarter report on February 5.

Ahead of earnings, Clear Street has increased its assumption for a larger sales contribution from the American Electric Power (AEP) order in Wyoming and now believes Bloom could achieve about 500 MW of fuel cells for that site. As such, the firm increased its 2026 sales forecast by 2% and its 2027 sales forecast by 4%.

Q4 Earnings Ahead

Bloom Energy is expected to report fourth quarter revenue of $647.6 million according to Wall Street estimates, as per data from Fiscal.ai.

The company is expected to post a profit of $0.31 per share in the fourth quarter. 

How Did Stocktwits Users React?

Retail sentiment around BE trended in ‘neutral’ territory amid ‘high’ message volume. 

Shares in the company have jumped 618% over the past 12 months.