Bloom Energy: AEP’s $2.65B Fuel Cell Deployment Underscores Data Center Power Upside and Supports Buy Rating

Susquehanna analyst Charles Minervino reiterated a Buy rating on Bloom Energy on January 9 and set a price target of $157.00.

Charles Minervino has given his Buy rating due to a combination of factors tied to Bloom Energy’s growing traction in the data center power market. He points to American Electric Power’s decision to move forward with a large portion of its remaining 900 MW fuel cell option—totaling about $2.65 billion—as a strong endorsement of Bloom’s technology and commercial viability. The scale of this order is particularly notable when compared with Bloom’s current revenue base, signaling that demand is ramping meaningfully faster than prior expectations. In Minervino’s view, this validates Bloom’s positioning as a key solution provider for data centers that need rapid, reliable access to power in constrained grid environments.
Minervino also underscores the strategic nature of AEP’s long-term 20-year offtake agreement with an investment-grade counterparty for the full output of the planned Wyoming facility, which provides visibility and stability to the revenue associated with this project. He sees Bloom’s solid oxide fuel cell systems as well-suited to meet hyperscale and large data center requirements, particularly at new campuses such as the Cheyenne, Wyoming site believed to be associated with the Crusoe 1.8 GW development. While pricing on the order comes in slightly below his prior assumptions, the volume, duration, and strategic importance of the deal more than offset that moderation. Collectively, these elements support his view that Bloom’s growth opportunity and competitive position justify a Buy rating.

In another report released on January 8, RBC Capital also maintained a Buy rating on the stock with a $143.00 price target.

Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BE in relation to earlier this year.