Bloom Energy Stock In Spotlight After BTIG Hikes Price Target To $30 From $20: Retail Sentiment Flips To Bullish

The new price target represents nearly a 20% upside potential from current levels. BTIG pointed out that data centers are aiding in the biggest U.S. grid transformation since utilities connected across state lines in the 1920s.

Shares of Bloom Energy (BE), a firm engaged in stationary fuel cell power generation, were trading in the green on Monday after BTIG reportedly raised its price target on the stock to $30 from $20, while keeping a ‘Buy’ rating on the shares.

The new price target represents nearly a 20% upside potential from current levels.

BTIG pointed out that data centers are aiding in the biggest U.S. grid transformation since utilities connected across state lines in the 1920s.

The firm expects U.S. data center capacity to grow at 10% annually over the next five years, which should lead to a 2% annual growth in U.S. power demand over this period.

BTIG also reportedly noted that the lead times in connecting to the grid and the need for prompt power are pushing power users to pay up for access to grid power with Core Scientific (CORZ) already benefiting, while Bloom Energy customers can go behind the meter with the firm’s natural gas fuel cell offering.

Meanwhile, retail sentiment on Stocktwits flipped into the ‘bullish’ territory (59/100) from ‘bearish’ a day ago.

Most retail chatter on Stocktwits indicated a positive bias for the stock.

Recently, Bloom Energy shares were in the news after the company announced a $125 million project financing partnership with certain funds managed by HPS Investment Partners (HPS) and Industrial Development Funding (IDF).

The $125 million financing is committed to fund 19 megawatts (MW) of energy server deployments in the first tranche. HPS and IDF will acquire Bloom’s energy servers, including several advanced on-site microgrid solutions. The funding will support the installation of Bloom equipment contracted under PPA structures.

Meanwhile, shares of Bloom Energy have gained over 73% since the beginning of the year, significantly outperforming the benchmark U.S. indices.

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