Bloom Energy gets a boost from J.P. Morgan's bullish call on valuation
Apr. 16, 2021 12:26 PM ETBloom Energy Corporation (BE)By: Carl Surran, SA News Editor2 Comments
Bloom Energy (BE +7.2%) bounces higher after J.P. Morgan upgrades shares to Overweight from Neutral with a $36 price target, as the stock's 21% YTD drop provides an opportunity to buy at a more attractive valuation.
While Plug Power (PLUG +4.7%) "offers investors optionality associated with use of a PEMs-based technology in multiple verticals, BE's SOFC technology is more focused on the stationary distributed energy solutions market, and offers a more linear growth outlook," JPM's Paul Coster writes to explain why Bloom shares have been somewhat neglected.
But "it's worth noting that the linearity could be in the 25% CAGR range (not too shabby), and BE provides offers investors meaningful scale [and] visibility... and the firm is transitioning into sustainable profitability (~25% gross, high-single-digit PF EBITDA margin)."
Bloom Energy has "a prudent strategy focused on sustainable growth," but it is "the cheapest fuel cell company on the market," Enterprising Investors writes in a bullish analysis posted on Seeking Alpha
Bloom Energy gets a boost from J.P. Morgan's bullish call on valuation
Apr. 16, 2021 12:26 PM ETBloom Energy Corporation (BE)By: Carl Surran, SA News Editor2 Comments
Bloom Energy (BE +7.2%) bounces higher after J.P. Morgan upgrades shares to Overweight from Neutral with a $36 price target, as the stock's 21% YTD drop provides an opportunity to buy at a more attractive valuation.
While Plug Power (PLUG +4.7%) "offers investors optionality associated with use of a PEMs-based technology in multiple verticals, BE's SOFC technology is more focused on the stationary distributed energy solutions market, and offers a more linear growth outlook," JPM's Paul Coster writes to explain why Bloom shares have been somewhat neglected.
But "it's worth noting that the linearity could be in the 25% CAGR range (not too shabby), and BE provides offers investors meaningful scale [and] visibility... and the firm is transitioning into sustainable profitability (~25% gross, high-single-digit PF EBITDA margin)."
Bloom Energy has "a prudent strategy focused on sustainable growth," but it is "the cheapest fuel cell company on the market," Enterprising Investors writes in a bullish analysis posted on Seeking Alpha