Bloom Energy (BE) could win more large data center orders as its expanded Brookfield Asset Management partnership, fast delivery times, utility deals and easier grid rules support wider use of its fuel cells, UBS said in a note Tuesday.
The Brookfield partnership has grown to $25 billion from $5 billion and should help Bloom Energy expand its power systems for artificial intelligence data centers worldwide, UBS said, adding that it expects more orders from AI companies and utilities, including growth from Bloom Energy's work with Nebius (NBIS), Oracle (ORCL) and American Electric Power (AEP).
Data center operators are likely to focus more on the full cost of getting reliable power rather than only the cost of producing electricity, and Bloom Energy compares well under this measure because its systems can provide steady power near data centers and reduce the need for costly grid, storage and backup upgrades, according to the note.
New US rules that may speed up grid connections for large power users could also help Bloom Energy, especially as data centers may need to cover the cost of grid improvements, the investment firm said.
UBS kept its buy rating for Bloom Energy and raised its price target to $350 from $322, while adding that 2028 sales estimates have been increased to $8.84 billion from $8.51 billion amid expectations for higher demand.
Price: $299.26, Change: $-3.44, Percent Change: -1.14%