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Bloom Energy (BE) is back in focus after signing two large commercial agreements: a US$2.65b energy server sale to American Electric Power and a US$5b partnership with Brookfield Asset Management for AI focused data centers.
See our latest analysis for Bloom Energy.
The recent American Electric Power and Brookfield deals sit on top of a powerful move in the shares, with a 1 month share price return of 71.13% and a year to date share price return of 71.13%. Over a longer horizon, total shareholder return has been very large over the past year and remains several times higher when you look back three and five years. This suggests momentum has been building as investors reassess Bloom Energy’s role in on site power for data centers.
If this kind of AI driven power story has your attention, it could be a good moment to scan other high growth tech and AI names using high growth tech and AI stocks.
After a 71% move in a month and multi billion dollar contracts on the table, Bloom now trades above the average analyst price target. Is this the start of a rerating, or are markets already pricing in future growth?
At a last close of $168.89 versus a most followed fair value estimate of about $111.18, the prevailing narrative points to a rich valuation that leans heavily on aggressive growth and profitability assumptions.
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, and are described as poised to drive continued operating margin and net margin expansion.
Curious what kind of revenue growth, margin expansion, and future earnings multiple have to come together to justify that gap between fair value and today’s price? The most followed narrative sets out a detailed path for higher earnings, richer margins, and a future valuation multiple that is above the current industry level. If you want to see exactly which assumptions have to line up for that story to work, the full narrative lays out the numbers, timelines, and moving parts in one place.