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Bloom Energy rallies after JPMorgan upgrade as pullback represents buying opportunity

Published 05/19/2023, 09:38 AM
Updated 05/19/2023, 09:38 AM
© Reuters.  Bloom Energy (BE) rallies after JPMorgan upgrade as pullback represents buying opportunity

Bloom Energy (NYSE:BE) shares traded over 6% higher on Friday after JPMorgan analysts upgraded shares to Overweight from Neutral.

The analysts see a buying opportunity in Bloom Energy after shares retreated 45% in the last 3 months. The new price target of $20 per share implies an upside potential of nearly 50%.

“We believe the recent pullback is overdone and that investors can take advantage of the volatility to add to positions in a stock that we believe will be a long-term beneficiary of the energy transition,” they said in a client note.

They highlight the upcoming Analyst Day as one of the several catalysts that can help shares to re-rate higher. The event is scheduled for May 23.

Moreover, “contract announcements, continued efficiency improvements in the Fremont facility, and more details regarding specific impacts from the Inflation Reduction Act could [also] serve as catalysts.”

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