What Happened?
Shares of electricity generation and hydrogen production company Bloom Energy (NYSE: BE) fell 8% in the afternoon session after BofA Securities maintained its "Underperform" rating on the stock, even while it raised its price target.
The bank lifted its price view to $24.00 from $21.00. However, the maintained "Underperform" rating signaled that the analyst still saw a potential downside in the company's near-term market performance. This mixed message appeared to worry investors more than the higher price target encouraged them. The move came amid wider concerns about the company's fundamentals and reports of insider selling activity, which fueled a cautious outlook. While some analysts pointed to Bloom's potential in the AI data center power market, especially after a deal with Oracle, the negative view from a major bank seemed to weigh more heavily on the stock.
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What Is The Market Telling Us
Bloom Energy’s shares are extremely volatile and have had 66 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 4.2% as a wave of positive analyst sentiment hit the stock, highlighted by a major price target increase from UBS. The investment bank more than doubled its price target on Bloom Energy to $105 from $41, keeping a 'Buy' rating on the shares. Analysts cited the company's "time to power advantage" as a key factor, noting its fuel cells can be deployed in just 3-6 months. This speed is a huge benefit for power-hungry data centers, which can't wait the 4-5 years required for traditional power solutions.
Other firms shared this bullish view. Morgan Stanley also hiked its price target to $85, pointing to a new agreement to power Oracle's AI data centers. Adding to the chorus, Roth Capital raised its target to $73. This broad support underscored the growing belief that Bloom is uniquely positioned to capture the urgent power demand from the booming AI industry.
Bloom Energy is up 226% since the beginning of the year, but at $76.07 per share, it is still trading 11.8% below its 52-week high of $86.27 from September 2025. Investors who bought $1,000 worth of Bloom Energy’s shares 5 years ago would now be looking at an investment worth $4,991.
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