Truist Financial analyst Jordan Levy has maintained their neutral stance on BE stock, giving a Hold rating yesterday.
Jordan Levy has given his Hold rating due to a combination of factors affecting Bloom Energy’s stock performance. The stock has experienced a decline of approximately 23% year-to-date, influenced by concerns over AI spending reductions and macroeconomic uncertainties. While there is potential for growth in the data center sector, these uncertainties, along with advancements in large language model efficiencies, present near-term challenges that necessitate a more cautious approach.
Additionally, while Bloom Energy achieved record sales in the fourth quarter of 2024, a return to seasonal norms is expected in the first quarter of 2025. The company faces potential tariff impacts, particularly concerning imported steel, despite its domestic manufacturing operations. The valuation of Bloom Energy remains high compared to peers, which may limit short-term upside potential. Consequently, the risk and reward appear balanced at current levels, leading to the Hold rating and a reduced price target of $19.
According to TipRanks, Levy is an analyst with an average return of -30.8% and a 17.78% success rate. Levy covers the Technology sector, focusing on stocks such as SolarEdge Technologies, Sunrun, and Sunnova Energy International.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a $19.00 price target.