Barclays Initiates Bloom Energy (BE) with Equalweight, Sees Growth Priced In

Bloom Energy Corporation (NYSE:BE) is one of the Buzzing AI Stocks on Wall Street. On January 28, Barclays initiated coverage on the stock with an Equal Weight rating and a price target of $153. The firm is optimistic on Bloom Energy’s fundamentals but sees growth priced in at current levels.

In particular, its solid-oxide fuel cells have emerged as an attractive alternative for on-site generation. Barclays noted how the demand for BE’s solid oxide fuel cell (SOFC) technology is anticipated to accelerate in the next couple of years.

With time to power now a top priority, BE has shown how it can bring on power faster than anyone. This has been demonstrated by its commitment to Oracle to do so within 90 days.

Moreover, costs and average selling prices continue to fall, which is narrowing the capex gap between Bloom’s SOFC technology and other alternatives such as gas engines and gas turbines. In addition, the technology continues to gain traction through contracts with large players, including American Electric Power’s decision to exercise its 900MW option.

Barclays also highlighted the transition to 800 Volt Direct Current (VDC), where BE’s OFC is well-positioned due to its native Direct Current power generation. However, the firm noted how all of this is reflected in the current valuation.

“However, this is reflected in the current valuation, in our view, which implies that BE should approach 5 GW of deliveries by the end of the decade, or roughly its 2025 volumes.”

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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