Bloom Energy, a San Jose-based company specializing in solid oxide fuel-cell based power generation, experienced a decline in shares after Bank of America reduced its price target and outlook for the second time in two months. The stock fell 8.3% to $11.44 during Monday's trading session, contributing to a year-to-date decrease of 22%.
Bank of America's analysts downgraded Bloom Energy from a "neutral" rating to an "underperform" rating and lowered its price target from $16 to $10. In their note, they projected a 3% decline in revenue for 2024 compared to the previous year, with a subsequent 3% growth in 2025. This downgrade comes after the recent appointment of a new chief commercial officer from General Electric and the termination of the previous officer.
The analysts at BofA expressed concern about the timing of these changes, stating that it adds uncertainty to the company's ability to achieve its targets for FY23 and establish a growth trajectory for FY24. In December, Bloom Energy was downgraded from a "buy" rating to a "neutral" rating due to a lack of clarity surrounding orders and backlog in 2024.
Bloom Energy's innovative Bloom Energy Server efficiently converts low-pressure natural gas or biogas into electricity. Despite the recent challenges, the company remains dedicated to its mission of sustainable energy generation.
For more information about Bloom Energy, please visit their website at www.bloomenergy.com.
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