I don't remember the last time investors in Bloom Energy(NYSE: BE) had so much fun. After clocking more than 45% gains on a single day last week, shares of the hydrogen fuel cell maker continued to rally higher this week, surging 18% through 10:30 a.m. ET Friday, according to data provided by S&P Global Market Intelligence.
Bloom Energy stock is now up a whopping 89% in just two weeks, as of this writing.
Analysts are excited about Bloom Energy
Several analysts turned bullish about Bloom Energy this week and raised their price targets on the stock. Notable ones include:
- RBC Capital Markets: New price target of $28 per share, up from $15 a share.
- BMO Capital: Raised price target to $19.5 per share from $12 a share.
- Morgan Stanley: New price target of $28 per share, up from $20 apiece.
- Wells Fargo: Upped price target to $22 per share from $14 a share.
One big announcement from Bloom Energy has caught the attention of the analyst community, and rightfully so.
Bloom Energy has signed an agreement with American Electric Power to supply the utility with up to one gigawatt (GW) of fuel cell products, starting with an order of 100 megawatts of fuel cells to power American Electric's artificial intelligence data centers. More orders are expected to follow in 2025.
It's a milestone for Bloom Energy. The company has, after all, deployed only about 1.3 GW worldwide since its existence, which means its deal with American Electric Power alone equals more than 75% of the total business Bloom Energy has done so far.
What's next for Bloom Energy stock?
2023 was a strong year for Bloom Energy -- its revenue grew by 11% to a record high of $1.3 billion, and its gross margin went up to 14.8% from 12.4% in 2022. For now, the company is guiding for revenue worth $1.4 billion to $1.6 billion in 2024.
Although Bloom Energy stock has jumped dramatically in just two weeks, its agreement with American Electric Power could open up massive opportunities for the company. If Bloom Energy can capitalize on them, the stock could be a big winner in the long term.
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Wells Fargo is an advertising partner of Motley Fool Money. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
