Bloom energy (NYSE:BE) the stock is on a roll. For four days in a row, shares of the fuel cell renewable energy pioneer have risen, including a monstrous 17% gain on Tuesday and another 11.7% spike through 10:15 a.m. ET this morning.
You can thank Wall Street for keeping the good times going. On Monday, Wells Fargo raised its price target for Bloom stock to $14 per share. On Tuesday, RBC Capital reiterated its own buy rating – also with a price target of $14.
What Wall Street Says About Bloom Energy Stock
Wells Fargo kicked off the rally with a note Monday touting rising demand for Bloom Energy’s fuel cell-powered electricity generators to power cloud data centers. The “timing of larger deals is uncertain,” the analyst warns. Still, Wells sees sales growing in 2025 and wants to be at the forefront.
Pointing to meetings the bank has held with Bloom’s CFO, RBC said Bloom is working to better explain to investors how to “evaluate execution progress.”
Is Bloom stock a buy?
And to be blunt, Bloom still has some work to do.
The company’s earnings report two weeks ago contained both revenue and results errors: Sales fell 14.5% and Bloom reported a loss of $0.25 per share under generally accepted accounting principles (GAAP). This was a major disappointment, coming just a quarter after Bloom reported a Q4 2023 profit – its first quarterly profit ever in a nearly 10-year history of reporting as a publicly traded company.
That miss cast doubt on analysts’ hopes that Bloom could at least turn profitable on an adjusted basis this year and report fair-to-good full-year GAAP earnings next year. Do not get me wrong. 2025 could still be the year that Bloom finally turns a profit and makes up for a decade of disappointment for its shareholders.
But with Bloom shares trading above $17 today and even fans on Wall Street saying the stock is worth just $14, investors should probably be cautious about buying.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Bloom Energy Stock Keeps Rising was originally published by The Motley Fool
