Why Bloom Energy Could Reach Revenues Of $1.8B Next Year, Says Bullish Analyst

Bloom Energy Corp (NYSE:BE) announced a 1 GW fuel cell supply deal with American Electric Power Company Inc (NASDAQ:AEP), which sent its stock soaring in early trading on Friday.

The deal is "proof of concept" that the company's product can power large-scale data centers, according to Piper Sandler.

Analyst Kashy Harrison upgraded the rating from Neutral to Overweight while raising the price target from $10 to $20.

The Bloom Energy Thesis: The latest order could "open the door to future arrangements with other utilities," Harrison said in the upgrade note.

Check out other analyst stock ratings.

Due to previous failures, markets had been skeptical about Bloom Energy's ability to deliver power to large data centers, the analyst stated. The order from AEP "is literally 10x what we were expecting," he added.

"Due to AEP order, the 80 MW SK Eternix order, the minimum 125 MW SK Ecoplant commitment, and continued momentum with other domestic customers, we see a path to $1.8B of revenues next year," Harrison further wrote.

BE Price Action: Shares of Bloom Energy Industries had risen by 49.21% to $19.83 at the time of publication on Friday.

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Photo: Courtesy Bloom Energy