Benzinga - by Priya Nigam, Benzinga Staff Writer.
In December 2023, Bloom Energy Corp (NYSE: BE) inked a deal with SK Ecoplant, a subsidiary of South Korean conglomerate SK Group, for the sale of its electrolyzer technology for hydrogen production.
The company has several catalysts for 2024, including cost reductions, improvements in its manufacturing process, and electrolyzer sales, according to Baird.
The Bloom Energy Analyst: Ben Kallo upgraded the rating for Bloom Energy to Outperform while raising the price target from $16 to $22.
The Bloom Energy Thesis: The sales agreement with SK Ecoplant is expected to generate $1.5 billion in product revenues and $3.0 billion in service revenues over the next 20 years, Kallo said in the upgrade note.
Check out other analyst stock ratings.
“We believe this partnership will continue to open new markets for BE and expect it to be an important channel for electrolyzer sales which should materialize in the near- to intermediate-term,” the analyst wrote.
“We expect production (and margins) to improve due to improved energy density in fuel cells, enhanced automation, and supply chain/logistics tensions easing as BE streamlines its Fremont footprint,” Kallo stated. “BE is targeting cost reductions of 10%-15% annually with operating expenses accounting for 15% of revenue by 2025,” he added.
BE Price Action: Shares of Bloom Energy had risen by 1.13% to $13.47 at the time of publication Wednesday.
Read Next: Oil Prices Fall As Gasoline Stocks Continue To Build: Average Pump Price Now $3.08
Photo: Courtesy Bloom Energy
Latest Ratings for BE
| Feb 2022 | Susquehanna | Upgrades | Neutral | Positive |
| Feb 2022 | B of A Securities | Upgrades | Neutral | Buy |
| Feb 2022 | Raymond James | Maintains | Strong Buy |
View the Latest Analyst Ratings
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.