BofA Raises Bloom Energy (BE) Price Target but Keeps Underperform Rating

Bloom Energy Corporation (NYSE:BE) is one of the 15 Best Performing AI Stocks Heading into 2026. On November 25, BofA Securities increased its price target on Bloom Energy Corporation (NYSE:BE) from $26 to $39 but kept an Underperform rating.

This update comes as Bloom Energy Corporation (NYSE:BE) has surged more than 300% year-to-date. BofA Securities noted that the company’s execution has improved, which led to revised estimates. However, the firm is concerned about consensus revenue forecasts and believes the stock’s current price level leaves limited room for growth.

BofA Securities now expects Bloom Energy Corporation (NYSE:BE) to see about a 40% MW compound annual growth rate through 2028. This suggests that demand for the company’s products is increasing. However, the research firm cautioned that maintaining this growth trajectory past 2027 would need a big jump in new awards.

The firm still sees a negative risk/reward profile. BofA Securities also noted that Q4 backlog metrics will be the next catalyst for what it sees as “muted order activity versus splashy headlines.”

Bloom Energy Corporation (NYSE:BE) designs and manufactures fuel cell systems for on-site power generation for data centers, semiconductor manufacturing, large utilities, and other commercial and industrial sectors.

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.

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Disclosure: None. This article is originally published at Insider Monkey.