Why Bloom Energy Stock Popped by 10% Today

Several positive mentions by analysts tracking fuel cell maker Bloom Energy's (NYSE: BE) stock gave some real lift to the shares on Friday. They helped improve investor sentiment to the point where Mr. Market pushed the company's stock more than 10% higher in value on the day.

New analyst moves

That morning, Clear Street's Tim Moore increased his Bloom Energy price target by $10 per share to $68, maintaining his hold rating on the shares.

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According to reports, Moore's new price target derives from his 2027 revenue estimate for the company of $3.7 million. He wrote that Bloom Energy is deserving of its current high valuations due to its association with data center projects. That's currently a hot infrastructure segment of the tech sector, as many are being built to handle the resource needs of artificial intelligence (AI) technology.

More encouragingly another researcher, bank HSBC, included Bloom Energy in a list of only 11 top stock picks. The company singled out the company for being a solid play on the future of AI data centers, and a potential over-performer in the upcoming quarterly earnings season. It was the only industrial stock in that elite listing.

A pricey stock to own

While Bloom Energy is almost indisputably a "right time and right place" company, well placed to benefit from the hot growth of AI, I feel that potential is already baked into the stock, given its rather rich valuations. Given that, I'd be more inclined to adopt Moore's neutral stance on investing in the shares.

HSBC Holdings is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy.