BMO Reiterates Market Perform on Bloom Energy (BE) After Grid-Scale Fuel Cell Deal

Bloom Energy Corporation (NYSE:BE) is one of the AI Stocks Investors Are Watching Closely. On January 9, BMO Capital analyst Christopher Dendrinos reiterated a Market Perform rating on the stock with a $136.00 price target.

The rating affirmation follows Bloom Energy’s first multi‑hundred‑megawatt utility order, a reflection of the growing adoption of its fuel cell technology at grid-scale for AI-driven demand.

Back in 2024, American Electric Power had signed an agreement with Bloom Energy to acquire 100 megawatts of solid oxide fuel cells, along with an option to purchase an additional 900 MWs. Its utility unit has now exercised that option, as revealed in a regulatory filing.

The firm noted how in addition to this agreement, AEP has also signed a 20-year PPA with an unnamed “high investment grade” counterparty for the output of fuel cell generated power at an average selling price of $2,950 per kilowatt, in line with BMO’s model. This will be constructed at a data center development in Wyoming that has been linked with Bloom Energy.

Even though this deal marks Bloom Energy’s first multi-hundred megawatt deployment, BMO believes that the disclosed revenue opportunity is below its base-case assumptions without an additional service contract.

“In an 8K today, AEP disclosed it will utilize majority of 900MW balance of its 1GW fuel cell supply agreement with BE for a WY-based data center project for $2.65B as part of a separately executed 20-year PPA with an investment-grade counterparty, which implies a product ASP ~$2,950/kW largely consistent with our ~$3,000/kW modeled assumption in 2026–2027E. However, also suggests total revenue opportunity as currently disclosed is ~65–70% below what we typically assume in BE fuel cell development if a separate service contract is not added later.”

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.

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