Clear Street recently adjusted its price target for Bloom Energy Corp. (NYSE: BE), raising it to $80 from a previous $68 while retaining a Hold rating in advance of the company's fiscal fourth quarter results expected on February 5. Bloom Energy's stock currently trades at $144.99, markedly above the revised analyst target and demonstrating a substantial 426.31% return over the past year.
According to data compiled by InvestingPro, Bloom Energy's financial health is assessed as "GOOD," though it carries an exceedingly high price-to-earnings ratio of 2,190, reflecting elevated investor expectations relative to earnings.
Clear Street's updated outlook incorporates an increased sales contribution assumption from American Electric Power's (NASDAQ: AEP) order for fuel cell deployment in Wyoming. The firm now projects that Bloom Energy could supply approximately 500 megawatts of fuel cells to the Wyoming site, substantially influencing future sales performance.
Consequently, the analyst house has raised its sales forecast by 2% for 2026 and 4% for 2027, reflecting the anticipated revenue impact from this sizable contract.
In addition, the note highlights the expanding momentum in Texas for the rapid development of AI hyperscale datacenters over the next several years. Clear Street estimates that by 2030, 20% of new AI facilities could be 1 gigawatt campuses, facilities that would require significant quantities of fuel cell technology.
Based on these projections, a 1 gigawatt datacenter would necessitate approximately 3,000 of Bloom Energy’s fuel cell server cabinets, indicating robust potential demand for the company's products in the evolving AI infrastructure market.
Supporting this optimism, recent developments include Bloom Energy’s engagement to power a 1.5 gigawatt datacenter in Navarro County, Texas, as evidenced by an air permit filing from Hedgehog USA. Furthermore, American Electric Power has announced a $2.65 billion agreement to acquire approximately 900 megawatts of Bloom Energy’s remaining fuel cell capacity designated for Wyoming deployment. This transaction forms part of a broader framework agreement to source up to 1 gigawatt of capacity from Bloom Energy.
Within the analyst community, opinions diverge. RBC Capital maintains an Outperform rating with a $143 price target on Bloom Energy, while Clear Street, despite its price target increase, continues to assign a Hold rating. Jefferies retains an Underperform assessment with an assigned target of $53 even following the AEP deal announcement. BMO Capital reiterates a Market Perform rating and a $136 price target, and Mizuho upholds a Neutral stance rated at $108. These varying perspectives underscore uncertainties in the energy sector and the valuation of Bloom Energy amid ongoing contract developments and market conditions.