'A True Disruptor': Wall Street Weighs In On Bloom Energy

Bloom Energy Corp (NYSE: BE) hit the ground running on the public market, trading as high as $29.88 in its first few weeks following its July IPO that priced at $15. The analyst quiet period on the stock has expired, and a handful of analysts weighed in Monday. Here's a sampling of what they had to say.

Voices From The Street

KeyBanc Capital Markets analyst Tahira Afzal said Bloom is an exceptional play on the high-growth fuel cell industry. “We view BE as being in nascent phases of adoption as a practical, low-emissions power solution for C&I customers who are becoming increasingly emissions-conscious and are looking for more weather-resilient energy solutions,” the analyst said. 

Morgan Stanley analyst Stephen Byrd said Bloom stock is not fully pricing in the potential for significant margin expansion and cash flow generation. “Bloom is a true disruptor, providing a baseload power source that is cheaper than the utility, has low emissions and is highly reliable,” he said. 

Raymond James analyst Pavel Molchanov said Bloom has differentiated technology, but the stock is pricey at its current level. “With the stock up 54 percent from last month’s IPO, 2020E non-GAAP EPS/CFPS multiples stand at 43x/17x — levels that, in our view, are in priced-for-perfection territory, making further multiple expansion difficult to envision." 

Ratings, Price Targets

• KeyBanc initiated coverage of Bloom Energy with an Overweight rating and $27 price target.
• Morgan Stanley initiated coverage with an Overweight rating and $30 target.
• Raymond James initiated coverage with a Market Perform rating.

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Photo courtesy of Bloom Energy.