By Michael Elkins
J.P. Morgan downgraded Bloom Energy (NYSE:BE) to a Neutral rating (From Overweight) and cut the price target on the stock to $27.00 (From $29.00) following the company’s 4Q earnings report and 2023 guidance.
BE reported 4Q results above expectations with PF EBITDA of $74.4 million on revenue of $462.6M, above the Street’s expectations of $46.2M. Record 4Q PF gross margin of 30.4% was also ahead of expectations, owing to cost reductions, improved ASPs, and a more favorable mix.
However, FY23 guidance was mixed. Management is looking for revenue of $1.4-1.5B, below expectations at the mid-point (Street: $1.48B). The company expects PF gross margin of ~25%, also below expectations (Street: 25.7%).
That said, the company expects “positive” PF operating, which analysts believe will be viewed favorably by investors. Management commentary regarding demand remains solid and capacity expansion remains on track.
Bloom Energy will host an analyst day on May 23. Analysts wrote in a note, “We expect BE to provide an update on the long-term roadmap through the end of this decade first presented at the 2022 Analyst Day. We also expect the company to provide an update on its expanding product and market line-up including core Energy Servers, hydrogen electrolyzers, and marine.”
Shares of BE are up 6.61% in pre-market trading on Friday.