Bloom Energy shares rose significantly on Tuesday after JPMorgan raised its price target on the fuel cell company, citing an extended financial outlook and strong contract visibility. The stock gained 16.40% to reach $229.39, reflecting investor confidence in the company's long-term growth trajectory.

JPMorgan analyst Mark Strouse maintained an Overweight rating on Bloom Energy while increasing the price target to $346 from a prior $267. This revision represents an increase of roughly 30% and implies approximately 55% upside from the current trading level. The upgrade coincides with an expansion of the firm's analytical model, which now extends through 2030 instead of concluding at the end of next year.

Under this longer-term horizon, Strouse projects Bloom Energy will deliver 4.1 gigawatts through its product segment. This projection is based on contracts already secured, including a recently broadened partnership with Brookfield. Strouse noted that securing additional customers and wider commitments would further enhance revenue visibility, which is crucial for a long-duration growth story.

In the near term, Strouse identified fresh contract announcements as key catalysts, emphasizing that new customer wins carry more weight than renewals with existing partners of similar size. He also highlighted the importance of supply chain transparency, particularly regarding the geographic sourcing of key materials, a topic that gained attention following a recent short report. Investors are also awaiting timing updates on major projects in Wyoming with AEP and in New Mexico with Oracle.

Strouse suggested that negative headlines concerning data center grid connections could benefit Bloom Energy. Since the company's fuel cells generate power directly at the customer site, they reduce pressure on the broader utility grid, offering a relative advantage amid connectivity challenges.

Key Financial Metrics

Bloom Energy Corp shares declined on Monday after TD Cowen analyst Jeff Osborne highlighted meaningful delays at two of its largest data center projects and ongoing supply chain risks. The firm maintained a Hold rating and a price target of $235, indicating the stock is fully valued at current levels. The setbacks pose a potential drag on the company's 2027 and 2028 forecasts despite alignment with consensus estimates for the current year.

Project Delays and Supply Chain Risks

Osborne noted that Oracle’s 2.45 gigawatt fully islanded buildout lacks an approved air permit, while the natural gas pipeline supplying the site remains tied up in a dispute with federal regulators. Additionally, the deployment timeline for AEP’s project near Cheyenne, Wyoming, has slipped by two years in less than 90 days, and the Wyoming campus reportedly lost its developer in June.

The analyst also highlighted the ongoing fight over scandium, a material used as a stabilizer in every Bloom fuel cell’s ceramic electrolyte. China requires export licenses for scandium, raising concerns about Beijing's control over Bloom’s ability to scale manufacturing. Two short seller reports in early July intensified this debate, and Osborne called for clearer details from management on the supply chain.

Financial Forecasts and Positive Developments

TD Cowen expects second-quarter revenue of $837 million compared with a Street consensus of $833 million. However, the firm projects adjusted EBITDA of $127 million, approximately 15% below the Street’s estimate of $149 million. For the full year, the firm models revenue near $3.75 billion and adjusted EBITDA of $670 million, both roughly in line with consensus.

Osborne pointed to a June FERC ruling instructing grid operators to be more accommodating to on-site power generation, such as fuel cells, as a positive shift that could open more data center discussions. He also noted potential order wins in Texas and Spain as encouraging signs.