Bloom Energy Corp. (BE) PT Lowered to $29 at Morgan Stanley; Top Clean Tech Stock to Own

Morgan Stanley analyst Andrew Percoco lowered the price target on Bloom Energy Corp. (NYSE: BE) to $29.00 (from $30.00) while maintaining a Overweight rating.

"BE is our Top Pick in clean tech. BE is a key beneficiary of several key themes including: (i) the growing "economic wedge" or value proposition of distributed energy (i.e. fuel cells for C&I customers), (ii) rising grid instability, (iii) grid capacity limitations, and (iv) the $3/kg clean hydrogen tax credit included in the IRA. The growing demand for BE's fuel cell technology, coupled with its ability to consistently reduce its product costs by 10%-15% per year should drive meaningful margin expansion (+751 bps from 2022-2025) and FCF generation in 2024 and 2025, which is not reflected in current valuation with the stock trading at a 37% discount to hydrogen peers on 2025 EV/Sales. Upcoming catalyst: Clean hydrogen tax credit guidelines, which could catalyze meaningful electrolyzer order announcements and provide upside to consensus revenue expectations from 2025-2030."

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