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Bloom Energy (BE) has been in focus after American Electric Power committed to a US$2.65b purchase of its solid oxide fuel cells, exercising an additional 900 MW option tied to a 2024 agreement.
See our latest analysis for Bloom Energy.
The AEP contract and other recent agreements have coincided with sharp gains, including a 68.32% 1 month share price return and a very large 1 year total shareholder return. This suggests momentum has picked up as investors reassess Bloom Energy’s prospects.
If this kind of contract driven story has your attention, it could be a good moment to scan high growth tech and AI stocks for other potential beneficiaries of growing power and AI infrastructure demand.
After a 68.32% 1 month surge and a very large 1 year total return, plus fresh contracts and partnerships, the key question is simple: is Bloom Energy still undervalued, or is the market already pricing in years of growth?
Bloom Energy’s most followed narrative pegs fair value at about US$111.18 per share, compared with a last close of US$149.50, which is a wide gap for investors to weigh.
• Ongoing product cost reductions and digital-twin-enabled operational improvements, fueled by AI-driven analytics from a large installed base, are lowering cost per watt and raising manufacturing efficiency, poised to drive continued operating margin and net margin expansion.
Curious how revenue growth, rising margins, and a premium future P/E all fit together here? The narrative leans on bold earnings targets and confident valuation math. Want to see exactly which assumptions have to line up to reach that fair value?
Result: Fair Value of $111.18 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you still have to weigh risks such as competition from zero-emissions alternatives and the impact of natural gas reliance on long-term demand and margins.
Find out about the key risks to this Bloom Energy narrative.
If you are not fully on board with this view or prefer to work from your own numbers instead, you can build a custom thesis in minutes with Do it your way.
A great starting point for your Bloom Energy research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
Bloom Energy might be on your radar right now, but you do not want to miss other stocks that could fit your style and watchlist.