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Jefferies Raises Bloom Energy Target but Stays Cautious, Making Q4 Backlog the Next Test

A strong third quarter and an up to $5 billion Brookfield partnership propelled a sharp October rally as Bloom ramps manufacturing for AI data-center power.

Overview

  • Jefferies lifted its price target on Bloom Energy to $53 from $31 but maintained an Underperform rating, citing unresolved questions about joint-venture profitability.
  • Analysts expect Bloom to disclose its backlog in the fourth quarter, which they say should clarify potential sales for 2026 and 2027 and the timing of deployments.
  • Bloom and Brookfield Asset Management announced plans for up to $5 billion to deploy Bloom’s fuel-cell systems for AI data centers.
  • Bloom reported Q3 revenue up 57% year over year with gross margin at 29.2%, an operating profit of $7.8 million, and nearly $20 million in operating cash flow.
  • Shares rose about 57% in October and roughly 300% over three months as the company confirmed plans to double manufacturing capacity to 2 gigawatts by the end of 2026.