Bloom Energy (NYSE:BE) held its Analyst Day on Tuesday, where it reiterated the short and long-term guidance. For 2023, the company expects $1.4-$1.5 billion in revenue (vs. consensus of $1.46B), and approximately 25% adjusted gross margin (vs. consensus of 25%). The company’s long-term financial plan includes 30-35% annual revenue growth through 2031, 30% adjusted gross margin by 2025, and 15% adjusted operating margin by 2025.
Morgan Stanley reiterated its Overweight rating and $30 price target on the stock, noting that the Investor Day shines a light on the company’s multi-year growth opportunity and margin improvement.
According to the bank, the strong multi-year growth tailwinds within the company's fuel cell and electrolyzer business, achievable near-term margin improvement, and strong balance sheet position are not properly reflected in its current valuation.
Another firm, KeyBanc, shared its views on the event, reiterating its Overweight rating and $32 price target on the stock.
According to the firm, Bloom Energy offers significant value (at <2x 2024E sales) and is an attractive way to invest in the energy transition even without affording any meaningful credit for the upcoming growth in electrolyzer sales.
Shares closed with nearly a 7% loss today.