Why Jefferies Cut Bloom Energy (BE) to Underperform Despite AI Data Center Hype

Bloom Energy Corporation (NYSE:BE) is one of the AI Stocks Every Investor Should Watch. On September 24, Jefferies analyst Dushyant Ailani downgraded the stock from Hold to Underperform with a price target of $31.00 (from $24.00). The firm has warned that investor enthusiasm may be outpacing fundamentals with uncertainty regarding growth prospects beyond 2026.

“BE is indeed a leader in a promising niche, with many bullish assumptions facing practical constraints. Given the limited visibility into post-2026 growth and some early signs of over-exuberance, we find that risks to the downside outweigh further upside at the current levels. D/g to Underperform on rich valuation. Need to see significantly incremental company-specific data points to justify current levels. PT $31.00.”

Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers. While we acknowledge the potential of BE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT:  10 AI Stocks on Market Radar and 10 AI Stocks in the Spotlight This Week Disclosure: None.