Bloom Energy: Promising Data Center Wins but Uncertain Long-Term Service Economics Support Hold Rating

Analyst Ameet Thakkar from BMO Capital maintained a Hold rating on Bloom Energy and keeping the price target at $136.00.

Ameet Thakkar has given his Hold rating due to a combination of factors surrounding Bloom Energy’s evolving revenue profile and technology risk. He views the newly announced AEP purchase of most of the remaining 900MW under the 1GW framework and the associated 20‑year PPA as confirmation that large, investment‑grade data center customers are willing to deploy Bloom’s fuel cell solutions at scale, at pricing broadly aligned with his prior assumptions. However, because the disclosed $2.65B transaction appears to cover mainly equipment and does not yet clearly include a long‑term service component, the total economic value of this project looks meaningfully lower than what his broader model typically assumes for comparable Bloom deployments.
At the same time, the agreement highlights a key uncertainty around contract structure and duration: AEP’s 20‑year offtake contrasts with Bloom’s usual 10‑year service terms and 5‑year stack life, raising questions about whether a separate service agreement will materialize or whether the fuel cells might be used as a shorter‑term bridge solution. Thakkar also notes that while order momentum is improving and Bloom is successfully positioning its solid oxide fuel cell platform as a differentiated baseload and data center power solution within the energy transition, the technology is still at an early commercialization stage in the markets Bloom is targeting. Taken together, the mix of encouraging project wins but incomplete visibility on long‑term service revenue and technology execution leads him to recommend investors neither aggressively buy nor sell the stock at current levels, supporting his Hold rating.

Thakkar covers the Technology sector, focusing on stocks such as Enphase Energy, Nextpower Inc, and First Solar. According to TipRanks, Thakkar has an average return of -8.2% and a 46.83% success rate on recommended stocks.

In another report released yesterday, Clear Street also maintained a Hold rating on the stock with a $68.00 price target.