Bloom Energy Corp. (NYSE: BE), announced on Friday a contract with American Electric Power Company Inc. (NASDAQ:AEP) to supply up to one gigawatt worth of solid oxide fuel cell technology.
The shares of this renewable energy company have opened up about 50% today.
AEP is expecting to order more fuel cells in 2025. Bloom Energy shares are now trading at about $20, compared to $9.0 in October.
Bloom Energy is well positioned to grow revenue
Bloom Energy, based in California, makes solid oxide fuel cell systems that can run on hydrogen alone or with “any mixture thereof and natural gas”.
The solution is “ideal” for AI data centers because of its lower carbon footprint. Bloom has already signed power capacity agreements with Intel, CoreWeave and others.
The New York listed firm partnered last week with SK Eternix to work on a fuel cell project it claimed would be the largest in the history of the world. KR Sridhar, the Bloom Energy chief executive said today in a release:
We are ready to handle the rapidly growing electricity demand. Our factory is fully operational and can produce GWs per year.
The recent developments could help to improve the company’s revenue, which fell by more than 17 percent to $330 millions in its third quarter. An improvement in the financials may translate into a rise in stock prices in 2025.
Bloom Stock does not pay dividends at the time of writing.
Piper Sandler upgrades Bloom stock
Kashy Harrison, analyst at Piper Sandler, upgraded Bloom Energy from “underweight” to “overweight”, as AEP’s agreement with Bloom Energy positions the company for huge gains in the months ahead.
Harrison believes that this deal will provide significant growth for BE, even though it is expected that the names in renewable energy are likely to suffer under Trump’s administration.
This is because Donald Trump already promised to reverse Joe Biden’s climate policy.
The analyst at Piper Sandler recommends buying Bloom Stock as the “upside to 1-GW potential is literally 10x more than we expected.”
Bloom Energy is also expected to secure similar contracts from other utilities giants now that one has approved its technology.
Kashy Harrison says that such agreements are likely to push BE’s revenues up to $1.8 Billion in 2025.
Piper Sandler, however, isn’t the only firm to be bullish about Bloom Stock at this time.
Analysts have set the current average price of $17 as their target for BE’s shares. After the AEP announcement on Friday, Bloom shares have already exceeded that price.
The post Bloom Stock poised to gain massively after AEP Deal, Analyst Says may be updated as new developments unfold.
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