Company Reports

We maintain our $10 per share fair value estimate for no-moat Bloom Energy following the company's first-quarter results. We view shares as slightly overvalued.

We lower our fair value estimate for no-moat Bloom Energy to $10 from $14 following fourth-quarter results. The reduction in our valuation is driven by moderating our medium-term revenue growth assumptions following disappointing 2024 revenue guidance and modest backlog growth. We view shares as fairly valued in light of our Very High Uncertainty Rating.

Bloom Energy's core product is its Bloom Energy Server, a distributed solution to meet commercial and industrial customers' 24/7 power needs. Customer use cases vary, but typically prioritize reliability and emission reduction, and to a lesser extent cost savings. Bloom’s Energy Server is based on solid oxide fuel cell, or SOFC, technology and runs on natural gas, biogas, or hydrogen. Natural gas has historically been the dominant fuel, but we expect greater emphasis on biogas and hydrogen in coming years. In comparison with other fuel cell companies, Bloom's SOFC technology is best suited for stationary power applications.

Clean energy stocks have had a roller-coaster 18 months. Optimism following the passage of the Inflation Reduction Act in August 2022 gave way to rising interest rates in 2023. We highlight three key themes for investors to focus on in 2024: interest rates, U.S. policy, and profitability.

Media reports have picked up on leaked guidance for the hotly contested U.S. green hydrogen tax credit. While the rules have yet to be finalized, the initial reports point to slightly more restrictive guidance than hoped by many industry participants. Shares of hydrogen-exposed equities underperformed on Dec. 5, with the Global X Hydrogen exchange-traded fund down 2.9% versus the S&P 500 decline of 0.1%.

We lower our fair value estimate for no-moat Bloom Energy to $14 from $18 following third-quarter results. The reduction in our valuation is driven by moderating our medium-term revenue growth for the company’s eEnergy servers and electrolyzers as well as higher working capital needs. We view shares as fairly valued in light of our Very High Uncertainty rating.

Bloom Energy's core product is its Bloom Energy Server, a distributed solution to meet commercial and industrial customers' 24/7 power needs. Customer use cases vary, but typically prioritize reliability and emission reduction, and to a lesser extent cost savings. Bloom’s Energy Server is based on solid oxide fuel cell, or SOFC, technology and runs on natural gas, biogas, or hydrogen. Natural gas has historically been the dominant fuel, but we expect greater emphasis on biogas and hydrogen in coming years. In comparison with other fuel cell companies, Bloom's SOFC technology is best suited for stationary power applications.

We maintain our $18 per share fair value estimate for no-moat Bloom Energy following the company's second-quarter results. We view shares as fairly valued.

We lower our fair value estimate for no-moat Bloom Energy to $18 from $21 following its May 23 investor day. The primary driver of our lower valuation is the moderation of our longer-term return on invested capital assumptions. We view shares as slightly undervalued.

Bloom Energy's core product is its Bloom Energy Server, a distributed solution to meet commercial and industrial customers' 24/7 power needs. Customer use cases vary, but typically prioritize reliability and emission reduction, and to a lesser extent cost savings. Bloom’s Energy Server is based on solid oxide fuel cell, or SOFC, technology and runs on natural gas, biogas, or hydrogen. Natural gas has historically been the dominant fuel, but we expect greater emphasis on biogas and hydrogen in coming years. In comparison with other fuel cell companies, Bloom's SOFC technology is best suited for stationary power applications.

We maintain our $21 per share fair value estimate for no-moat Bloom Energy following the company's first-quarter results. We view shares as slightly undervalued.

We maintain our $21 fair value estimate for no-moat Bloom Energy following the company's fourth-quarter results. We view the shares as fairly valued.

We trim our fair value estimate for Bloom Energy to $21 per share from $22 following its third-quarter results. The driver of our decrease in fair value is tempering our margin outlook following management's commentary. We view Bloom's current risk-reward as balanced and await further commercial progress and continued margin improvement prior to recommending shares.

Bloom Energy's core product is its Bloom Energy Server, a distributed solution to meet commercial and industrial customers' 24/7 power needs. Customer use cases vary, but typically prioritize reliability and emission reduction, and to a lesser extent cost savings. Bloom’s Energy Server is based on solid oxide fuel cell, or SOFC, technology and runs on natural gas, biogas, or hydrogen. Natural gas has historically been the dominant fuel, but we expect greater emphasis on biogas and hydrogen in coming years. In comparison with other fuel cell companies, Bloom's SOFC technology is best suited for stationary power applications.

We raise our fair value estimate for Bloom Energy to $22 per share from $15 after reviewing its second-quarter results and incorporating the benefits of the proposed Inflation Reduction Act. The driver of our increased valuation is lifting our revenue forecast across the company's product portfolio, in part due to expected passage of the bill.

Bloom Energy's core product is its Bloom Energy Server, a distributed solution to meet commercial and industrial customers' 24/7 power needs. Customer use cases vary, but typically prioritize reliability and emission reduction, and to a lesser extent cost savings. Bloom’s Energy Server is based on solid oxide fuel cell, or SOFC, technology and runs on natural gas, biogas, or hydrogen. Natural gas has historically been the dominant fuel, but we expect greater emphasis on biogas and hydrogen in coming years. In comparison with other fuel cell companies, Bloom's SOFC technology is best suited for stationary power applications.

Less than two weeks after seemingly ending prospects of a climate spending bill, Sen. Joe Manchin and Senate Democrats announced support for the Inflation Reduction Act of 2022. While not final, the chances of ultimate passage appear high based on industry reports.

We maintain our $15 per share fair value estimate for Bloom Energy following the company's 2022 analyst day as our outlook is unchanged. The event largely focused on the need for decarbonization, Bloom's technology, its cost-reduction roadmap, and its long-term strategy. Most notably, management unveiled no changes to the company's long-term financial guidance with its 2021 fourth-quarter earnings.

We are initiating coverage of Bloom Energy with no moat, a stable moat trend rating, and a $15 fair value estimate. We view shares as fairly valued.

Bloom Energy's core product is its Bloom Energy Server, a distributed solution to meet commercial and industrial customers' 24/7 power needs. Customer use cases vary, but typically prioritize reliability and emission reduction, and to a lesser extent cost savings. Bloom’s Energy Server is based on solid oxide fuel cell, or SOFC, technology and runs on natural gas, biogas, or hydrogen. Natural gas has historically been the dominant fuel, but we expect greater emphasis on biogas and hydrogen in coming years. In comparison with other fuel cell companies, Bloom's SOFC technology is best suited for stationary power applications.