On Friday, UBS analyst Manav Gupta reaffirmed a positive stance on Bloom Energy Corp (NYSE:BE), maintaining a Buy rating and a $33.00 price target. With a market capitalization of $5.4 billion and a remarkable 156% return over the past year, the company has caught investors' attention. Gupta addressed several misconceptions held by skeptics regarding the company's performance and outlook. According to InvestingPro data, five analysts have recently revised their earnings estimates upward for the upcoming period.
Bloom Energy surpassed its 2024 revenue guidance, contrary to bearish expectations that the company would fall short. It reported annual sales of $1.47 billion, exceeding the $1.4 billion target, and achieved a record $572 million in sales for the fourth quarter of 2024 alone. The company maintains a healthy liquidity position with a current ratio of 3.36, indicating strong ability to meet short-term obligations.
Furthermore, concerns over the expiration of the Investment Tax Credit ( ITC (NSE:ITC)) as a significant obstacle were dispelled. Gupta highlighted that ITC benefits are set to continue through 2028, bolstered by safe harbor provisions. The anticipated use of these provisions is expected to encourage further investment in the industry until the deadline.
Contrary to the view that Bloom Energy's growth has stalled, the company's guidance suggests a robust sales increase for 2025. The midpoint of their guidance indicates a 19% growth in sales, while the upper end projects a 25% increase. With analysts forecasting positive earnings of $0.12 per share for 2024, the company appears positioned for profitability.
Lastly, Gupta addressed the belief that the demand for data center power was a transient trend disrupted by the DeepSeek announcement. He clarified that this announcement had little to no effect on Bloom Energy's ongoing negotiations with new data centers. The urgency for powering data centers remains, and the DeepSeek development has not altered this demand.
Bloom Energy continues to show resilience and growth potential, as reflected by UBS's reiterated rating and price target, signaling confidence in the company's future performance. Based on InvestingPro's Fair Value analysis, the stock appears to be trading above its intrinsic value. Discover 12 additional exclusive ProTips and comprehensive financial analysis in the Pro Research Report, available to InvestingPro subscribers.
In other recent news, Bloom Energy reported fourth-quarter 2024 earnings that significantly exceeded market expectations. The company achieved an earnings per share of $0.43, surpassing the forecasted $0.29, and revenue reached $572.4 million, well above the anticipated $507.36 million. Bloom Energy also reported a record annual revenue of $1.47 billion for 2024, marking a 10.5% increase from the previous year. Meanwhile, RBC Capital Markets maintained an Outperform rating with a $28 price target, citing Bloom Energy's strong fourth-quarter results and positive 2025 forecast. Conversely, BMO Capital Markets lowered its price target to $23 from $25, maintaining a Market Perform rating due to concerns about backlog growth and operating margins. KeyBanc Capital Markets retained its Sector Weight rating, acknowledging Bloom Energy's solid performance and alignment with guidance. Piper Sandler adjusted its price target to $31 from $33, while maintaining an Overweight rating, noting strong product margins and EBITDA performance despite some operational leverage concerns.
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