On Monday, Evercore ISI began covering Bloom Energy Corp . (NYSE:BE) with an Outperform rating and a price target set to $21.00. The firm highlighted the company's execution of a multi-year growth strategy aimed at aiding global decarbonization efforts and deploying hydrogen solutions at scale.
Bloom Energy's solid oxide fuel cells, known for their high efficiency and low emissions, are reportedly gaining market traction across various expanding sectors such as marine, aviation, data centers, and more. The company's off-grid hydrogen solutions are also seen as a burgeoning opportunity due to ongoing interconnection challenges.
The analyst from Evercore ISI anticipates Bloom Energy's solid oxide fuel cell sales to accelerate throughout the decade, with electrolyzer sales expected to significantly contribute to growth starting in 2025 and beyond. The forecast for electrolyzer capacity is broad-based, with an expectation to reach 242GW by 2030.
Bloom Energy's energy servers have the advantage of being fuel-agnostic, allowing for easy interchangeability of components between the company's fuel cells and electrolyzers.
"Combined with wind, solar, nuclear, and other renewable resources, Bloom is positioned for longer-term growth in green hydrogen, a principal fuel for a low-carbon future," said the analysts.
The initiation of coverage comes at a time when legislative support for decarbonization and electrification is strong, providing a favorable environment for Bloom Energy's expansion and innovation in low-carbon technologies.
InvestingPro Insights
As Bloom Energy Corp. (NYSE:BE) continues to execute its growth strategy in the renewable energy sector, recent data from InvestingPro provides valuable insights for investors. The company's market capitalization stands at $2.54 billion, reflecting its position in the market. Despite the challenges, Bloom Energy has demonstrated resilience with a significant 11.95% return over the last week, suggesting a growing investor confidence in its short-term performance.
InvestingPro Tips highlight the company's anticipation of net income growth this year, which aligns with Evercore ISI's positive outlook on Bloom's fuel cell and electrolyzer sales. Additionally, the company's ability to quickly adapt with fuel-agnostic energy servers may be a contributing factor to its recent strong return of 23.79% over the last month, showcasing its potential to capitalize on the current legislative support for green technologies.
For investors looking to delve deeper into Bloom Energy's financial health and future prospects, InvestingPro offers further tips and metrics. Currently, there are PRONEWS24 additional tips available on InvestingPro, which can be accessed at https://www.investing.com/pro/BE. These insights could prove invaluable for making informed decisions, especially considering the company's strategic positioning in a fast-evolving industry.
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