Bloom Energy Stock Surges 18.15% on Tax Credit Policy Boost

Bloom Energy, a leading company in the fuel cell industry, saw its stock price soar by 18.15% on Wednesday, reaching its highest level since January of the current year. This surge was primarily driven by a significant upgrade from a major financial institution, which raised its rating for Bloom Energy's stock from neutral to overweight. The target price for the stock was also substantially increased by 83%, from 18 dollars to 33 dollars.

The core reason behind this evaluation adjustment is the recent inclusion of fuel cells in the clean energy investment tax credit system under the newly enacted "Inflation Reduction Act" in the United States. This policy is expected to significantly boost the company's revenue and profit margins starting from the 2026 fiscal year.

Analysts highlighted that the tax credit policy will enhance Bloom Energy's pricing power in negotiations with data center clients and stimulate demand from price-sensitive non-data center clients. Despite potential impacts from administrative orders that could adjust the safe harbor rules, the current market for gas turbines faces challenges such as high prices and extended delivery times. Fuel cells, with their tax credit advantages, are poised to accelerate the replacement of hesitant gas turbine orders, driving overall order growth.

Furthermore, the inclusion in the 48E tax credit system is expected to steepen Bloom Energy's growth trajectory. Based on the midpoint guidance for the 2025 fiscal year, the company's revenue is projected to grow by 19% year-over-year. This growth is attributed to both the enhanced pricing power from data center clients and the expansion of the price-sensitive customer base.

Additionally, as production capacity utilization improves and cost control measures are optimized, Bloom Energy's product gross margin is expected to receive additional support, laying a solid foundation for long-term profitability improvements. This development underscores the strategic importance of Bloom Energy in the evolving energy market and highlights the potential for continued growth and innovation in the fuel cell industry.