Will Bloom Energy stock go to $16? 1 Wall Street analyst thinks so.
on the other side flower energy (BE 1.90%) Susquehana analyst Biju Perincheril thinks there’s still plenty of room for the fuel cell specialist’s stock to move, even though it may not deliver as high a power output as previously thought. Perincheril set a $16 price target for Bloom Energy stock, down from $18 on Wednesday.
At the end of Tuesday’s trading session, shares of Bloom Energy were priced at $10.80, so Perincheril’s $16 price target implies an upside of more than 48%.
It is only a matter of time before the financial condition of this fuel cell stock
Perincheril forecast price targets based on updated project timing expectations for the coming quarters, according to Thefly.com. In particular, the analyst noted that Bloom Energy is pursuing opportunities related to data centers and is likely to recognize these projects in its backlog in the second half of 2024.
Bloom Energy ended 2023 with a backlog of $12 billion, up 21% from the previous year.
Before you plant Bloom stocks in your portfolio and expect them to bloom, take a look at the backlog.
Those interested in filling their portfolios with hydrogen stocks would be wise to have Bloom Energy on their radar. It’s still not consistently profitable or capable of generating organic cash flow, but it’s a lot closer than its major competitors. plug strength.
That said, it is still important for prospective investors to be aware of the risks associated with investing in Bloom Energy. The analyst recognizes an upside of over 48% for Bloom Energy stock, but there is no timeframe associated with the price target. Moreover, those considering buying shares of Bloom Energy should especially keep the company’s backlog in mind. Although it ended 2023 with a total backlog 21% higher than 2022, the company only grew the systems portion of its 2023 backlog by 6% year-over-year, compared to 16% year-over-year systems growth. If the value of system contracts in the backlog does not increase, it may take longer to achieve profitability.
Scott Levine has no positions 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.
