Bloom Energy Is Sapped By Low Visibility, Says Bearish Analyst

Shares of Bloom Energy Corp BE tanked in early trading on Monday, even as sustainable energy comes into investor focus.

There is low visibility into the company’s orders and conversions and its revenue growth is likely to decelerate to be “approximately flat” in 2023-2025, according to BofA Securities.

The Bloom Energy Analyst: Julien Dumoulin-Smith downgraded the rating for Bloom Energy from Neutral to Underperform, while reducing the price target from $16 to $10.

The Bloom Energy Thesis: Earlier this year, the company terminated its chief commercial officer (COO) and hired an external replacement from General Electric, the analyst said in the downgrade note.

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The change and its timing only add to the uncertainties, with management previously alluding to “make up ground in the final stretch of 2023 to achieve FY23 targets and set a path for 2024 growth,” the analyst wrote.

“Our updated $1.4Bn 2024 revenue estimate shows a -3% decline YoY… The delta widens in 2025 with our consolidated estimate reflecting just 3% YoY growth, nearly -37% below Street,” he added.

Although some margin expansion is possible, “there are risks to the overall hydrogen outlook with draft 45V regs from IRS in late December meaningfully reducing scale of future electrolyzer sales, adding further caution to 2026 sales composition as well,” Dumoulin-Smith further stated.

BE Price Action: Shares of Bloom Energy were down 8.2% to $11.48 at the time of publication Monday.

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