Evercore says American Electric disclosure a ‘meaningful positive’ for Bloom

After American Electric (AEP) disclosed that one of its subsidiaries executed an unconditional purchase agreement to acquire a substantial portion of its option to purchase Bloom Energy (BE) solid oxide fuels cells and indicated the purchase agreement was to acquire about $2.65B of fuel cells for the development and construction of a fuel cell generation facility with a high investment grade third party customer under a 20-year offtake arrangement, Evercore ISI called this “a meaningful positive for Bloom” as it sheds light on the demand for its product and provides investors insight into the fact that the American contract will result in volumes well above the minimum commitment. The firm has an Outperform rating and $152 price target on Bloom shares.