Bloom Energy Stock Hits Over 1-Year High As Analysts Boost Targets Following AEP Deal: Retail Rides The Momentum

This marks the highest level for Bloom Energy’s stock since February 2023.

First Published Nov 18, 2024, 11:56 PM IST | Last Updated Nov 18, 2024, 11:56 PM IST

Shares of Bloom Energy Corp. ($BE) jumped as much as 15% on Monday to hit a 20-month high of $24.92.

The surge comes after RBC Capital and Morgan Stanley both raised their price targets on Bloom Energy following the announcement of a 1GW framework agreement with American Electric Power ($AEP).

RBC Capital increased its price target to $28 from $15, maintaining an ‘Outperform’ rating.

The brokerage sees Bloom Energy’s new deal as a strong validation of its fuel cell technology and market potential, despite uncertainty around the timing of the initial 100 MW delivery.

Meanwhile, Morgan Stanley raised its target to $28 from $20, keeping an ‘Overweight’ rating.

It expects the agreement to boost Bloom's order volumes over the next four years, raising its 2025 and 2026 EBITDA estimates by 35% and 62%, respectively.

Bloom Energy Sentiment and Message Volume on Nov 18 as of 1:00 p.m. ET | Source: Stocktwits

Retail sentiment on Stocktwits improved to ‘bullish’ from ‘neutral’ a day ago along with an uptick in chatter to ‘high’.

Some users on Stocktwits are suggesting that Bloom Energy’s surge is driving gains for hydrogen peers Plug Power Inc. ($PLUG) and Fuelcell Energy Inc. ($FCEL) as well.

Plug Power’s stock was up nearly 7% during mid-day trading on Monday, while Fuelcell Energy rocketed by over 30%.

According to AEP, the project will be the “largest utility fuel cell technology initiative in the nation.”

Bloom Energy has deployed 1.3 GW of fuel cells globally to date, according to the company’s website.

Management said these systems can be operational within six to nine months, offering potential advantages for industries requiring rapid deployment, such as data centers, during the company’s third-quarter earnings call earlier this month.

AEP has already purchased 100 MW of Bloom Energy’s solid oxide fuel cells as part of its 1GW framework agreement.

According to its press release, AEP plans to order the remaining 900 MW in 2025 after closing out discussions with undisclosed customers about deploying these fuel cells.