Bloom Energy Is Sapped By Low Visibility, Says Bearish Analyst
Portfolio Pulse from Priya Nigam
Bloom Energy Corp (NYSE:BE) shares dropped after BofA Securities analyst Julien Dumoulin-Smith downgraded the stock from Neutral to Underperform and cut the price target from $16 to $10. The downgrade was due to low visibility into the company's orders and conversions, with revenue growth expected to be flat for 2023-2025. The company's recent change in COO and uncertainties regarding achieving FY23 targets and 2024 growth were also concerns. Additionally, potential risks to the hydrogen outlook could affect future sales, as per the analyst.
January 29, 2024 | 4:50 pm
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Bloom Energy's stock was downgraded by BofA Securities from Neutral to Underperform with a price target cut from $16 to $10, due to concerns over order visibility and revenue growth.
The downgrade by a major analyst due to concerns about the company's revenue growth and order visibility is likely to negatively impact investor sentiment and the stock price in the short term. The significant reduction in the price target further emphasizes the analyst's bearish outlook, which could lead to a decrease in stock price as the market reacts to these concerns.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100