Bloom Energy Positioned for “Robust Growth” as Demand for Fuel Cells Remains Strong
Overview
Bloom Energy is expected to experience significant growth as the demand for fuel cells continues to soar, according to RBC Capital Markets. Chris Dendrinos, an analyst at RBC, initiated coverage of the electric and hydrogen power company and gave it an outperform rating. Dendrinos’ price target of $24 implies a 54.3% increase in shares from their closing price on Thursday. Before the market opened on Friday, shares were already up over 2%.
Positive Outlook
Dendrinos believes that Bloom Energy’s growth potential is underappreciated and deserves a premium compared to its peers. He expects emissions regulation and social pressures to decarbonize to continue driving the adoption of Bloom Energy’s products and solutions. The company’s value proposition and favorable positioning will likely lead to further growth and positive financial outlook.
Overcoming Challenges
Despite challenges such as Covid, inflation, and high natural gas prices, Dendrinos believes that Bloom Energy is making significant progress. The company’s increasing presence in Europe, improved cost structure, and lower natural gas prices are contributing to its growth and profitability prospects. Dendrinos emphasizes that Bloom Energy’s vertical sales approach is unlocking additional value, and there is a strong opportunity for expanding its customer base.
Customer Satisfaction
Bloom Energy has built solid relationships with customers in the data center, telecom, and healthcare sectors. The company’s offerings, known for their reliability, flexibility, sustainability, and short time-to-power, are valued holistically by customers, who are willing to pay for the incremental value they bring.
Stock Performance
Although the company’s stock has experienced a decline of over 18% year-to-date and more than 15% over the past 12 months, Dendrinos believes that Bloom Energy’s growth potential and positive outlook are not fully reflected in the current share price.