Bloom Energy stock jumps 10.9% as RBC maintains rating on demand

On Tuesday, shares of Bloom Energy Corp surged 10.9% in early trading after RBC Capital maintained its Outperform rating and raised its price target to $335 per share. The fuel cell manufacturer's stock has surged 257% over the past year, bringing its market capitalization to $87.3 billion. RBC Capital cited the company's recent decision to lease 158,000 square feet at its Fremont, California production facility as evidence of robust customer demand, nearly matching the company's existing manufacturing footprint of 164,000 square feet.

Furthermore, Bloom Energy's recent confirmation that Oracle Corp remains committed to delivering 2.4 gigawatts of fuel cell capacity under Project Jupiter, which is on schedule, provided additional support for the stock. Although the company's behind-the-meter business model is considered strong, some analysts remain cautious about project delays, such as a natural gas pipeline delay to early 2027 due to permitting issues.

Jefferies recently raised its price target for Bloom Energy to $264 from $229 while maintaining a Hold rating, while UBS increased its target to $325 from $300 and upgraded its rating to Buy, citing the company's inclusion in the S&P 500 index as a positive catalyst. However, some analysts note that the stock's high price volatility, with a beta of 3.81, should be considered when assessing its investment potential.