Investing.com — Barclays upgraded Bloom Energy to Overweight from Equal Weight, saying demand is inflecting more sharply than it expected. The broker trimmed its price target to $289 from $316.
Analyst Christine Cho’s target implies 47% upside from Monday’s close of $196.25. She said accelerating capacity expansion, rising customer deposits and new supply commitments suggest the fuel cell maker’s backlog is growing faster than previously assumed.
Customer deposits rose to $661 million in the third quarter from $78 million at the end of 2025, including a roughly $300 million sequential increase in the quarter alone. If customers typically put down about 10% of contract value, that implies at least $3 billion of underlying contracts, though some may be milestone payments on existing deals, Cho noted.
She called it “potentially one of the clearest indications yet” of a meaningful acceleration in customer commitments.
Bloom’s actions point the same way, Cho said. It spent about $150 million in capex in the third quarter, which suggests it added roughly 1 gigawatt of manufacturing capacity, and signed a lease that about doubles its manufacturing footprint. It also disclosed about $5.8 billion in long-term supply commitments through 2029, up from $16.4 million in the second quarter.
The catch is cash flow. Funding inventory, vendor advances and capacity ahead of revenue recognition could keep 2027 free cash flow below Street expectations. An accounting effect from the Oracle warrant will also weigh on reported revenue and gross margins, with about $307 million of customer consideration recognized as contra-revenue.
Barclays raised its revenue outlook to $4.65 billion for 2026 and $8.16 billion for 2027. It forecasts adjusted earnings of $3.32 a share in 2026, up from $3.18, and $5.41 in 2027. Higher revenue more than offsets lower gross margins, lifting EBITDA versus its prior forecast.
Bloom on Monday signed a non-binding memorandum of understanding with California Resources Corp. and its Carbon TerraVault unit to evaluate more than 1 gigawatt of power generation with carbon capture. Carbon TerraVault would provide carbon dioxide transportation and storage capacity.
The stock jumped more than 5% in premarket trading after the announcement.
Original Article
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