Bloom Energy Receives Hold Rating and $25.00 Price Target from Roth MKM Analyst

Roth MKM analyst Chip Moore maintains a Hold rating on Bloom Energy with a price target of $25.00. The company's recent earnings report showed a quarterly revenue of $326.02 million and a GAAP net loss of $23.81 million. Corporate insider activity is negative, with 38 insiders selling their shares over the past quarter.

Bloom Energy Corp (BE) reported its Q1 2025 earnings, showcasing a mixed performance with revenue growth but a net loss. The company's revenue for the quarter was $326.02 million, marking a 39% year-over-year (YoY) increase [2]. However, the company recorded a net loss of $23.81 million, down from a loss of $30.7 million in Q1 2024 [2].

Roth MKM analyst Chip Moore maintained a Hold rating on Bloom Energy, with a price target of $25.00, reflecting a downside of 19.97% from the current price [3]. The analyst cited concerns about the company's valuation and the absence of dividends.

The company's gross margin improved to 28.7%, up 1,000 basis points from Q1 2024's 17.5% [2]. Operating income turned positive at $13.2 million, compared to a deficit of $30.7 million in the previous quarter [2]. However, EBITDA was $25.2 million, a significant improvement from the negative $18.2 million recorded in Q1 2024 [2].

Bloom Energy's earnings call highlighted several challenges, including potential delays in decision-making for its consumer-facing segment due to economic uncertainty and a 100 basis point impact on gross margin from tariffs [2]. Additionally, the company faces challenges in expanding its international presence beyond Korea and supply chain issues [2].

Despite these challenges, Bloom Energy secured a 500 MW volume agreement with SK Ecoplant, extending through 2027 and ensuring nearly $1.5 billion in product revenue over the next four years [1]. The company also reported strong demand from AI data centers and large industrial operations, with no slowdown in these sectors [2].

Corporate insider activity was negative, with 38 insiders selling their shares over the past quarter [3]. This could indicate a lack of confidence among insiders, though it is important to note that insider selling does not always correlate with future performance.

In conclusion, Bloom Energy's Q1 2025 earnings showed revenue growth but a net loss, reflecting a mixed performance. The company faces several challenges, including economic uncertainty and tariffs, but also has opportunities for growth in its AI data centers and large industrial operations segments. Analysts remain cautious, with Chip Moore maintaining a Hold rating, but the company's strong demand in certain sectors suggests potential for future growth.

References:
[1] https://mercomindia.com/bloom-energy-records-revenue-a-22-8-yoy-decline
[2] https://www.gurufocus.com/news/2990011/susquehanna-adjusts-price-target-for-bloom-energy-be-amid-market-challenges-be-stock-news
[3] https://www.tipranks.com/stocks/be/forecast