On Friday, TD Cowen maintained a Hold rating on Bloom Energy Corp . (NYSE:BE) but increased the shares target to $13.00 from the previous $10.00.
The adjustment follows Bloom Energy's first-quarter results, which fell short of expectations. Despite this, the company announced strategic growth through a collaboration with Intel (NASDAQ:INTC) and a new contract with Quanta.
The first quarter's performance did not meet the anticipated hundreds of megawatts investors were expecting, according to the firm. However, the company's full-year 2024 guidance remains unchanged. Bloom Energy's expansion efforts are seen as positive steps, though the scale of the projects with Intel and Quanta is believed to be modest.
TD Cowen highlighted concerns regarding Bloom Energy's rising receivables, particularly those linked to the troubled PDX109 project. The firm's reliance on SK Group for receivable financing adds a layer of uncertainty to the financial outlook. This factor played a significant role in the firm's assessment and subsequent price target adjustment.
The new price target of $13.00 reflects a cautious optimism, acknowledging the company's potential for growth through its recent deals while also considering the current challenges it faces.
The Hold rating indicates that the firm advises investors to maintain their current position on the stock until there is more clarity on the company's financial health and project execution.
Bloom Energy Corp., known for its solid oxide fuel cell technology, aims to deliver reliable, clean, and affordable energy. The company's partnership with Intel and the contract with Quanta are part of its strategy to expand its market presence and diversify its project portfolio.
InvestingPro Insights
As Bloom Energy Corp (NYSE:BE) navigates through its growth and expansion plans, real-time data from InvestingPro provides a deeper look into the company's financial health and market position. With a market capitalization of $2.65 billion, the company operates with a high Price / Book multiple of 5.27, which may raise questions about valuation for potential investors. Despite a negative P/E Ratio of -8.32, the company's revenue has grown by 11.2% over the last twelve months as of Q1 2023, indicating some positive momentum in sales.
InvestingPro Tips suggest that analysts are expecting net income growth this year, which could be a promising sign for investors looking for profitability. However, the company's cash burn rate and the recent downward revisions of earnings by four analysts may be points of concern. Additionally, with a moderate level of debt and liquid assets exceeding short-term obligations, Bloom Energy appears to be managing its leverage and liquidity in a balanced manner. For investors interested in a comprehensive analysis, InvestingPro offers additional tips on the company's financials and market performance.
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