Overview
- Shares fell about 15% intraday on Wednesday to roughly $65.83 after the call, following a more than 650% gain over the past year.
- BofA’s Dimple Gosai kept an Underperform rating and raised the price target to $24 from $21, implying roughly 70% downside from Tuesday’s close of $86.27.
- The note argues valuation far exceeds performance, citing a ~99.9x 2025E EV/EBITDA multiple and unchanged 2025 revenue guidance of $1.65–$1.85 billion despite Oracle and AEP announcements.
- Operational flags include service margins and stack reliability below historical targets, stack life not consistently reaching five years, and reported sub‑50% utilization at Bloom’s 1 GW Fremont facility.
- The bank highlights stiff competition and limited adoption of on‑site generation, with only about 6% of tracked data centers using co‑located power as turbines and engines from established suppliers lead on cost and speed.