Bloom Energy Corporation (NYSE:BE) shares rose Friday. RBC Capital Markets initiated coverage of the electric and hydrogen power company with an outperform rating, saying the stock could jump more than 50% on strong demand for fuel cells.
The company has shown strong improvements despite an earnings loss in Q1 FY2023, with ambitious goals to reach up to $20 billion in revenue by 2031.
The company benefits from the growing market for fuel cells and emission-free energy, and from legislation like the Inflation Reduction Act which encourages investment in renewables.
Despite positive signs, the company's high debt and lack of profitability make it a speculative investment; I recommend holding rather than buying until sequential quarters of positive net incomes are posted.
Bloom Energy, founded in 2001 and based in California, is a leading provider of sustainable and reliable energy solutions. Through their advanced fuel cell technology, they enable the production of electricity from various fuel sources, such as natural gas, biogas, and hydrogen, resulting in significantly lower emissions compared to traditional power generation methods. Their fuel cells, known as Bloom Energy Servers, deliver efficient and uninterrupted power for a wide range of applications, including residential and commercial buildings, data centers, manufacturing facilities, and utilities.
BE issues jumped $1.25, or 8%, to $16.80.
