Shares of power generation and hydrogen production company Bloom Energy (NYSE:BE) fell 11.8% in the morning meeting as Jefferies lowered its shares from “hold” to “underperforming”, citing concerns about the company's overvalued and uncertain long-term growth.
The investment firm warns that investor enthusiasm is ahead of the company's fundamentals. Jefferies analysts pointed out that there is limited visibility into Bloom's growth outlook beyond 2026 and see “early signs” of the stock. Although Jefferies raised its price target for the stock to $31, this is still significantly below the stock’s trading price, indicating a potential downside. The assessment shows that the risk of stock decline exceeds the possibility of further returns at current levels.
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Bloom Energy's stock is very volatile, with more than 5% action in the past year. But this big move is rare even for Bloom Energy and shows that the news has greatly affected the market's perception of the business.
The previous step we wrote was about 24 hours ago when the stock fell 8% in news that BOFA Securities maintained its “underperforming” rating on the stock, even though it improved its target target.
The bank raised its price view from $21.00 to $24.00. However, the maintained “underperforming” rating suggests that analysts still see potential shortcomings in the company’s recent market performance. This mixed information seems to make investors even more worrying.
The move was due to widespread concerns about the company's fundamentals and insider sales activities, which raised cautious views. While some analysts point to Bloom's potential in the AI data center power market, especially after a deal with Oracle, a negative view of a major bank seems to have a greater impact on stocks.
Bloom Energy has risen 186% since the beginning of the year, but it is trading at $66.75 a share, and it is still trading below its 52-week high of $86.27 in September 2025. Investors bought $1,000 worth of Bloom Energy stock five years ago and will now look for $4,568 worth of investment.
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