Bloom Energy has been a publicly-traded company since 2018. This company is a player in the green energy market. It produces and sells solid oxide fuel cells, which are a cleaner alternative to traditional batteries or petrol fuels.
While lots of stocks suffered significant losses over the last months due to coronavirus, Bloom wasn’t one of them. It actually has seen strong results in the first quarter. Furthermore, the company reported $187.9 million in second-quarter revenues, along with 306 customer acceptances.
That last metric represented a 19.5% sequential rise, as well as a surge in new business. After such promising results, Bloom’s shares jumped in July, climbing above pre-market crash levels. Even after an early August declined, the company’s shares remain high.
Bloom Energy declared recently that it would offer $135 million in senior convertible notes to be due in 2025. It plans to use the new debt to pay down a series of 10% promissory notes due next year, thus converting short-term debt into long-term debt. Experts think that this move will be a stabilizing factor for the company.
What do analysts say?
Credit Suisse’s analyst, Michael Weinstein, thinks that Bloom Energy has great potential. He expects near-term shipment growth due to strong demand for reliable power supply.
Bloom Energy’s fuel cells currently operate on natural gas and can take advantage of low-cost natural gas, unlike other companies that have emerged in the last month. Bloom Energy may become a key manufacturer of building blocks in a hydrogen economy.
Weinstein rated the company as a Buy. He set his price target at $24, which implies a robust 87% one-year upside for the stock.
All in all, Bloom Energy has a Moderate Buy rating from the analyst consensus, with 3 Buy ratings and 2 Holds. The average price target is $17.25, and this suggests a 33% upside from the current share price of $12.97.