Shares in Bloom Energy (BE), the California-based developer of solid-oxide fuel cell systems for power generation, have surged by nearly 250% since the start of the year. However, Daiwa analyst Dennis Ip sees a little more upside ahead, citing the significant change in orders for the company’s product.
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High conviction on BE? Try Tradr's BEX or BEZFor context, Bloom Energy develops, sells, and installs solid-oxide fuel cell systems for power generation, with a focus on AI data centers. It offers a platform, the Bloom Energy Server, which is used to convert fuel such as natural gas and biogas to electricity without combustion.
Why Daiwa Is Bullish on Bloom Energy Stock
On Friday, Ip shifted gears on BE stock, going from a Hold to Buy and setting a price target of $324, which implies about 7% upside in the months ahead. The new figure is the highest target for Bloom Energy’s shares since RBC Capital’s Chris Denrinos called BE a Buy about a month ago and set a price target of $335, predicting about 11% upside.
Apart from the boom in orders for Bloom Energy’s products, Ip also pointed to the company’s growth capacity and profit margin as the rationale behind his price target, which is currently the second highest on Wall Street. The analyst’s rating comes weeks after the California-based company released its first-quarter 2026 results, delivering a solid earnings beat.
During the three-month period that ended on March 31, Bloom Energy expanded its revenue by 130% year-over-year to $751.1 million — a record for the first quarter. Its earnings per share also hit $0.44, up 1,367% from $0.03 in the year-ago quarter.
Two other recently announced deals that likely triggered Dennis Ip’s rating upgrade are:
- The $2.6 billion deal with Nebius (NBIS) to install a total of 328 megawatts in phases (with 250 megawatts of guaranteed power) for the Amsterdam-based AI cloud company
- The expansion of its multigigawatt deal with Oracle (ORCL), the enterprise software giant and AI cloud company
Is Bloom Energy a Good Stock to Buy Now?
Across Wall Street, analysts have a Moderate Buy consensus rating on Bloom Energy’s shares. This is based on nine Buys and nine Holds issued over the past three months.
Moreover, the average BE price target of $262.61 implies about 13% downside risk in the months ahead.
