Bloom Energy Deploys Solid Oxide Fuel Cells; Street Sees 38.6% Upside


Bloom Energy has started the deployment of 40 megawatts of solid oxide fuel cells in the Northeast U.S. This deployment is under a Community Distributed Generation (CDG) program.

Bloom Energy (BE) Managing Director Ivor Castelino said, “Community distributed generation can be a national model to provide small businesses and residential customers greater access and choice for clean and reliable power generation sources.”

Castelino added, “These types of projects allow Bloom to provide clean power in a small footprint with enhanced resiliency to customers who, otherwise, have not had a choice for their energy needs.”

A CDG program encourages the use of clean power within the grid distribution network. This reduces the stress on the grid while also decreasing pollution and costs. Users get access to cleaner, affordable and resilient power.

The company’s energy servers are expected to reduce carbon emissions by about 50,000 metric tons each year, compared to the current grid alternative. It has signed CDG project agreements of more than 40 megawatts, with 7.5 megawatts of this having already been deployed on Staten Island, New York. (See Bloom Energy stock analysis on TipRanks)

Last month, J. P. Morgan analyst Paul Coster reiterated a Hold rating on the stock and lowered the price target to $36 (42.5% upside potential) from $38.

Commenting on the 22% slide in the J. P. Morgan Renewables index, Coster said, “This will have a lingering effect on multiples, particularly the more speculative hydrogen pure play stocks.”

Furthermore, the analyst is “incrementally constructive” on Bloom Energy and said, “The company has more scale and is in closer proximity to profitable growth.”

Turning to the rest of the Street, the stock has a Moderate Buy consensus rating alongside an average analyst price target of $35 (38.6% upside potential), based on 3 Buys and 4 Holds. Shares have rallied about 349% over the past year.

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