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Bloom Energy, a pioneer in renewable energy fuel cells, has seen its stock price continuously rise despite being unprofitable. This trend can be attributed to Wall Street’s continuous optimism. On Monday, Wells Fargo raised Bloom’s target stock price to $14 per share, and on Tuesday, RBC Capital reiterated its buy rating for the stock with the same target price.
The company’s stock has been on a four-day upward trend, including a 17% surge on Tuesday (May 22nd) and another 11.7% increase as of Wednesday at 10:15 am Eastern Time.
Wall Street’s View on Bloom Energy Stock
Wells Fargo stated in its announcement on Monday that the demand for Bloom Energy’s fuel cell power generation equipment for cloud data centers continues to rise, thus setting the stage for the stock’s rebound. Analysts cautioned that the timing of significant deals remains uncertain. Nonetheless, Wells Fargo believes that sales will continue to grow through 2025 and is bullish on seizing the opportunity.
RBC indicated that in a meeting with Bloom’s CFO, the company is striving to better explain to investors how to “evaluate execution progress.”
Is Bloom Energy Stock Worth Buying?
Frankly, Bloom still has some work to do. The company’s financial report released two weeks ago showed a 14.5% decline in revenue and a GAAP loss of $0.25 per share. Following the company’s first quarterly profit in the fourth quarter of 2023 (the first quarter of profitability for Bloom as a publicly traded company in nearly a decade), the company’s performance has been disappointing.
Analysts hope Bloom will achieve at least adjusted earnings this year and full-year earnings based on GAAP in the coming year. 2025 could be the year Bloom finally achieves profitability, potentially making up for a decade of disappointing performance for shareholders.
