TD Cowen analyst Jeff Osborne maintained a Hold rating on Bloom Energy (BE – Research Report) today and set a price target of $20.00.
Jeff Osborne’s rating is based on a combination of factors that suggest a cautious approach to Bloom Energy’s stock. While there is potential for a rally driven by demand in the data center power sector, concerns about the company’s backlog and transparency remain. The backlog, although significant, has not shown growth when excluding installation revenue, and there are uncertainties regarding the safe harbor-related revenue.
Additionally, while Bloom Energy management has shown confidence and there have been improvements in gross margins and cash generation, the anticipated transparency from the new CFO/IR team has not materialized. The company’s shift towards more diverse projects introduces variability in pricing, and while there is potential for growth in data centers, clarity on market positioning is needed. Therefore, Osborne prefers to wait for more definitive developments before adjusting his rating.
Osborne covers the Technology sector, focusing on stocks such as Sunrun, NEXTracker, Inc. Class A, and Enphase Energy. According to TipRanks, Osborne has an average return of 1.0% and a 39.60% success rate on recommended stocks.