Bloom Energy Stock Gets Bullish Boost from J.P. Morgan Analyst

Bloom Energy Corp. NYSE: BE has seen its price target raised to $33 by J.P. Morgan analyst Mark Strouse, up from $18 previously. This represents a 30% upside potential for investors. Analysts are bullish on the company due to its potential in enhancing energy infrastructure for new data centers being built across the US in response to the growing race for artificial intelligence.

Bloom Energy Corp. (BE, Financial), listed on the New York Stock Exchange (NYSE), has seen its stock price target raised to $33 by J.P. Morgan analyst Mark Strouse, an increase of 30% from his previous target of $18. The new price target reflects a bullish outlook on the company's potential to enhance energy infrastructure for new data centers being built across the United States in response to the growing race for artificial intelligence [3].

Bloom Energy designs, manufactures, sells, and installs solid-oxide fuel cell systems, known as "Energy Servers," for on-site power generation. These systems are fuel-flexible, capable of using natural gas, biogas, and hydrogen to create 24/7 electricity for stationary applications. The company's technology is particularly well-suited to meet the high-demand, low-latency requirements of data centers, which are crucial for AI workloads [3].

The company has been experiencing strong financial performance. In the first quarter of 2025, Bloom Energy reported record revenue of $326 million, a 39% increase year-over-year. This was accompanied by a significant improvement in gross margin, rising from 17.5% in Q1 2024 to 28.7% in Q1 2025 [1]. The company also achieved its first-ever positive Q1 non-GAAP EPS and its fifth consecutive quarter of service profitability [1].

Analysts are optimistic about Bloom Energy's ability to capitalize on the growing demand for clean energy solutions. The company's partnerships with major players such as American Electric Power (AEP) and Equinix underscore its strategic positioning in the market. For instance, Bloom's agreement with AEP involves supplying up to 1 GW of fuel cells for AI-driven data centers, highlighting the company's ability to deliver scalable and resilient power solutions [2].

Moreover, Bloom Energy's expansion into the carbon capture market, through its partnership with Chart Industries, positions it to tap into a $50 billion market by 2030. This synergy could unlock new revenue streams as industries strive to meet net-zero emission mandates [2].

However, the company faces challenges, including potential delays in decision-making in its consumer-facing segment due to economic uncertainty and the impact of tariffs on gross margins. Additionally, the departure of CFO Dan Berenbaum could create temporary uncertainty in financial leadership [1].

Despite these challenges, the company's strong financial performance and strategic partnerships position it well to benefit from the growing demand for clean energy solutions and the infrastructure required to support AI workloads. Investors should closely monitor the company's earnings call on July 31, 2025, for updates on revenue mix, margin resilience, and pipeline visibility, which will provide further insights into the company's prospects [2].

References:
[1] https://www.gurufocus.com/news/2967353/bloom-energy-be-soars-with-impressive-192-increase-be-stock-news
[2] https://www.ainvest.com/news/bloom-energy-q2-earnings-beacon-decentralized-power-future-2507/
[3] https://www.morningstar.com/stocks/xnys/be/quote