Positive Outlook on Bloom Energy: Regulatory Approvals and Strategic Opportunities in Ohio

Analyst Andrew Percoco of Morgan Stanley maintained a Buy rating on Bloom Energy (BE – Research Report), retaining the price target of $30.00.

Andrew Percoco has given his Buy rating due to a combination of factors related to Bloom Energy’s recent developments in Ohio. The approval by the Public Utility Commission of Ohio for projects involving Bloom Energy, AEP, and data center customers like Amazon Data Services and Cologix is a significant positive step. This approval allows these projects to proceed, alleviating previous regulatory uncertainties that could have hindered progress.
Furthermore, the recent legislation in Ohio, which restricts AEP from owning and operating fuel cell systems for its customers, does not impact the current projects as they were filed before the restriction date. This situation provides Bloom Energy with a clear path forward in its collaboration with AEP, particularly through AEP’s unregulated subsidiary and operations in other states. These strategic opportunities and regulatory clarifications underpin Andrew Percoco’s positive outlook on Bloom Energy’s stock.