Bloom Energy Stock Pauses After Record Run Fueled By AI Infra-Demand - Here’s The Catalyst That Is Driving Downside In Premarket

Analysts’ consensus price target on the stock is $53.58, implying roughly 41% downside from Wednesday’s close

Bloom Energy Corp. (BE) stock fell over 2% in the early premarket session on Thursday after it snagged a downgrade from a Wall Street firm. The weakness may also be partly due to the strong rally on Wednesday, which pushed the stock to a new record.

Mizuho downgraded Bloom Energy stock to ‘Neutral’ from ‘Outperform,’ but upwardly revised the price target to $79 from $48, the summary of the research note published on the Fly on Thursday showed. 

The research firm attributed the downgrade to the company’s high valuation. Bloom Energy stock, which underwent a consolidation move until late July, has seen a meteoric rise, thanks to its exposure to the rapidly evolving artificial intelligence (AI) technology.  

For the year-to-date period, Bloom Energy stock has rallied over 300%. The consensus analysts’ price target for the stock is $53.58, implying a roughly 41% downside from Wednesday’s close. Mizuho analysts also expressed concerns about the company’s limited internal production capacity. However, improved visibility for Bloom Energy’s demand growth, especially utility-scale data center orders, led to the price target hike, according to Mizuho.

On Stocktwits, retail sentiment toward Bloom Energy stock stayed ‘bullish’ (62/100) as of early Thursday, while the message volume tempered slightly and yet held ‘high.’

Earlier this week, BTIG raised its price target for the stock to $80 from $42 and maintained a ‘Buy’ rating, citing expectations for strong demand for the company’s fuel cells over the next few years. The company’s fuel cells are used in high-performance servers placed in AI data centers. 

Recently, BFC Power, a Tallgrass subsidiary, has filed an air permit for up to 900 megawatt (MW) of Bloom Energy fuel cells in Laramie County, Wyoming in what is seen as the "largest project filing to date" and "a step-up in scale that puts fuel cells into the broader utility and data-center power conversation."

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