Summary: Jefferies has increased its price target on Bloom Energy Corp. to $92.00 from $53.00 but maintained an Underperform rating. The firm's change reflects higher 2026 revenue projections tied to recent orders from American Electric Power (AEP) and Quanta. Despite revising estimates upward, Jefferies cautions that the company's current share price sits well above the new target and that execution and clarity on future deployments will be key near-term catalysts.
Updated estimates and the basis for the move
Jefferies' revised target comes after the firm updated its 2026 model for Bloom Energy, driven by what it characterizes as meaningful orders from AEP and Quanta. Analyst Dushyant Ailani now expects Bloom Energy to generate $2.9 billion in revenue in 2026, a forecast the firm says is 16% above consensus. That projection builds on the company’s recent top-line momentum, including 44.5% revenue growth over the last twelve months and trailing revenue of $1.82 billion.
Valuation and market positioning
Even with the higher price target, Jefferies emphasizes that the new $92 objective remains markedly below Bloom Energy’s prevailing market price of $144.89. InvestingPro data referenced by the reporting indicates the stock is substantially overvalued relative to its Fair Value. Jefferies highlights that the company’s peak valuations leave little margin for error, which helps explain why the firm kept an Underperform rating despite the sizable raise in target.
Investor expectations and scrutiny ahead
Jefferies notes that investor expectations are elevated, with some market participants hoping for announcements about capacity expansions beyond what is already disclosed. The firm expects attention to shift from macroeconomic tailwinds that have supported demand to execution details - specifically, confidence in future deployment figures and clearer guidance from Bloom Energy’s management. The company is scheduled to report results in 10 days, a near-term event Jefferies sees as likely to focus investor scrutiny.
Volatility and recent share performance
Bloom Energy’s stock has shown extreme volatility, reflected in a beta of 3.02, and it has delivered a 386% return over the past year. Jefferies calls out that such pronounced market moves and high expectations increase the sensitivity of the stock to execution outcomes.
Other analyst views and related developments
Several other firms have updated their assessments of Bloom Energy following recent commercial developments. Clear Street has raised its target to $80 from $68, citing an AEP order in Wyoming that could translate to roughly 500 megawatts of fuel cells. Clear Street had earlier lifted a prior target to $68 from $58 based on a 2027 revenue projection of $3.7 billion. RBC Capital reiterated an Outperform rating with a $143 target after a permit filing showed Bloom Energy’s fuel cells will be used to power a 1.5 gigawatt datacenter in Navarro County, Texas, involving 4,615 Bloom Energy servers. BMO Capital reiterated a Market Perform rating with a $136 target, noting AEP’s acquisition of a substantial portion of the remaining 900 megawatts of fuel cells under its agreement with Bloom Energy. Jefferies, for context, previously maintained a $53 target when assessing AEP’s $2.65 billion deal to acquire a large portion of Bloom’s remaining fuel cells for deployment in Wyoming.
Takeaway
Jefferies’ move raises its modeled upside for Bloom Energy on the basis of larger projected 2026 revenue tied to AEP and Quanta orders, but the firm’s retained Underperform rating underscores the view that current market prices are priced for flawless execution. Near-term investor focus is likely to hinge on reported deployment figures and the degree of clarity management provides on growth pacing and capacity plans.