Shares of Bloom Energy Corp. advanced sharply on Monday, climbing approximately 7% to $152.98 by late morning. The stock's move significantly outpaced the broader market indices, with trading volume exceeding 5.3 million shares.
Analyst Action Drives Momentum
The rally followed a price target increase from Mizuho Securities. Analyst Maheep Mandloi lifted the firm's target to $110 from $89, while maintaining a Neutral rating. The adjustment was predicated on expected improvements in gross margins for 2026, supported by better capacity utilization and cost reductions.
Bloom Energy, a provider of solid oxide fuel-cell systems and electrolyzers, has positioned itself as a key player in the on-site power generation market. This is particularly relevant for data centers and other customers seeking alternatives to lengthy grid upgrades. The company recently reported Q4 revenue of $777.7 million and provided 2026 revenue guidance between $3.1 billion and $3.3 billion.
Execution is Key
Investor attention is now firmly fixed on the company's ability to convert its substantial backlog, which totals nearly $20 billion, into consistent shipments and positive cash flow. While the margin outlook is promising, it hinges on smooth execution without supply chain disruptions or customer delays.
CEO K.R. Sridhar has emphasized that the "bring-your-own-power" trend is now a business necessity. However, risks remain, as Bloom's near-term performance is tied to a handful of large-scale projects navigating financing and construction phases.
Other fuel-cell stocks presented a mixed picture during the session. Bloom's next quarterly earnings report is scheduled for May 6.
