HSBC Downgrades Bloom Energy Corp. (BE) to Hold

HSBC analyst Samantha Hoh downgraded Bloom Energy Corp. (NYSE: BE) from Buy to Hold with a price target of $24.50 (from $17.20).

The analyst comments: "Bloom has plenty of excess manufacturing capacity in the near term but may need to increase capacity at its Fremont facility from c750 MW to the GW scale by late 2025. Our estimates assume the company adds capacity gradually to its existing roofline while working capital continues to be a drag in the near term. However, we forecast Bloom to generate positive free cash flow in 2026 (accelerated from 2027 previously) and are increasing our DCF-derived TP to USD24.50 (from USD17.20), which incorporates a higher long-term/terminal growth rate for a longer and stronger tailwind from AI data center demand. Our DCF-derived TP of USD24.50 implies modest upside of 3.2%; hence we are downgrading the stock from Buy to Hold. We continue to like the Bloom story based on its exposure to strong secular themes of AI data center and hydrogen, but given the recent strong price performance and expectations reflected already, we view the valuation as fair."

For an analyst ratings summary and ratings history on Bloom Energy Corp. click here. For more ratings news on Bloom Energy Corp. click here.

Shares of Bloom Energy Corp. closed at $22.81 yesterday.

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