Bloom Energy Stock Rises After Morgan Stanley Hikes PT On AI-linked Power Demand, Retail’s Divided

The brokerage estimates a 42 gigawatt (GW) power shortfall in the U.S. for data centers being developed through 2028.

Fuel cell maker Bloom Energy (BE) stock gained 4.5% on Thursday after Morgan Stanley raised its price target to a street high of $35 from $28.

The new price target implies a 45% upside to the stock’s last closing price. The brokerage kept an ‘overweight’ rating on the stock.

“We believe Bloom Energy is the most underappreciated beneficiary of growing power demand in the U.S. and the accompanying need for distributed power generation solutions,” Morgan Stanley noted.

The brokerage estimates a 42 gigawatt (GW) power shortfall in the U.S. for data centers being developed through 2028.

“We believe Bloom's fuel cell is an obvious solution to be included in a menu of options available to prospective customers, which should, in our view, drive significant volume growth for the company from 2025-2028,” the brokerage added.

Morgan Stanley believes that Bloom's ability to improve its balance sheet and liquidity position while continuously innovating its product to serve the artificial intelligence or data center requirements has positioned it as a leading power provider to large-load customers.

Last year, the company signed a 1 GW fuel cell supply contract with American Electric Power (AEP), a utility.

Retail sentiment on Stocktwits moved to ‘neutral’ (45/100) territory from ‘bearish’(37/100) a day ago, while retail chatter was ‘normal.’

One retail investor said it is the beginning of an “energy monster.”

In February, the company posted fourth-quarter revenue of $572.4 million, compared to $356.9 million a year earlier.

Bloom shares have gained 14.4% year-to-date (YTD).

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