On Wednesday, Susquehanna maintained a Positive rating on Bloom Energy Corp . (NYSE:BE) but lowered the price target to $16.00 from the previous $18.00. The adjustment in price target comes as the firm updates its estimates ahead of Bloom's first-quarter earnings report. The revisions largely reflect changes in the timing of the company's projects.
Bloom Energy, known for its solid oxide fuel cell technology, is actively pursuing opportunities with greenfield data centers to supply its fuel cells. The company anticipates that orders from these engagements may start to appear in its backlog as soon as the second half of this year. This development is seen as a potential growth driver for Bloom Energy's future revenue.
Even though revenue from electrolyzers is not imminent, Bloom Energy's recent partnership with Shell (LON:SHEL) to explore the production of solid oxide electrolyzers is viewed as a positive move. The collaboration could pave the way for Bloom Energy to secure large-scale orders, which would be significant for the company's electrolyzer business segment.
The price target reduction reflects a cautious but still optimistic outlook from Susquehanna on Bloom Energy's near-term financial performance. The firm's analysts expect the company to continue its progress in the renewable energy sector, especially with the potential for new orders in the second half of the year.
Bloom Energy's partnership with Shell is also highlighted as a strategic initiative that could contribute to the company's long-term success. As Bloom Energy prepares to report its first-quarter results, investors will be watching closely for updates on project timelines, backlog growth, and the advancement of strategic partnerships like the one with Shell.
InvestingPro Insights
As Bloom Energy Corp. (NYSE:BE) gears up for its first-quarter earnings report, real-time data from InvestingPro provides additional context for investors evaluating the company's performance. With a market capitalization of $2.44 billion and a revenue growth of 11.2% in the last twelve months as of Q4 2023, Bloom Energy shows a capacity for increasing its sales. However, the company's P/E ratio stands at -10.87, reflecting challenges in profitability. The stock's recent price movements have been marked by volatility, with a significant return of 15.88% over the last month, but a notable decrease of 29.18% over the last three months.
InvestingPro Tips highlight that while Bloom Energy is expected to see net income growth this year, it has been quickly burning through cash. The company's stock price volatility is also underscored, which may be of particular interest to investors looking for short-term trading opportunities or those concerned about market fluctuations. Notably, Bloom Energy does not pay a dividend, which may influence the investment decisions of income-focused shareholders.
For investors seeking a comprehensive analysis, InvestingPro offers additional tips on Bloom Energy. By using the coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 9 more InvestingPro Tips available, this resource can be a valuable tool for those looking to deepen their understanding of the company's financial health and market position ahead of the earnings report.
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