UBS raises Bloom Energy stock price target to $325 on S&P 500 add

UBS has increased its price target for Bloom Energy Corp. (BE) to $325 from $300, highlighting a Buy rating following the company's inclusion in the S&P 500 index on September 21, 2026. S&P Dow Jones Indices announced their quarterly index rebalance, which included Bloom Energy. UBS believes this addition is a significant catalyst for the stock, as S&P 500 inclusion typically leads to increased passive ownership, estimated at 10% to 15% of a company's shares outstanding.

Passive investment vehicles, such as index funds and ETFs, are required to hold around 25% to 30% of each constituent's free-float market capitalization. UBS anticipates Bloom Energy's shareholder base to become more institutionalized post-inclusion, with a higher proportion of ownership concentrated among passive investment vehicles.

This transition often results in lower company-specific trading volatility. The firm also notes that inclusion tends to make the stock's correlation with broader market indices stronger, potentially moderating the stock's historically high volatility, which stands at a beta of 3.81.