Yesterday, Bloom Energy reported -
The report was a bombshell!!
The company crushed investor expectations
Revenue was $751 million - well above expectations of $540 million
Earnings per share were 0.44 - 3x forecasts of 0.13
Operating income was $130 million - 3x forecasts of $44 million
Operating margin was 33% - higher than forecasts of 29%
The company also raised its guidance for the next quarter
In short, an excellent report
Banks and investment firms responded by raising price targets
An interesting section in Morgan Stanley's report caught our attention
Summary of the report:
Morgan Stanley raises its price target to $310
The bank analyzes the reason for the price target increase in three sections
1️⃣ Aggressive demand expansion and accelerated market share
Following exploding demand in AI data centers and the commercial and industrial market, the company raises its revenue forecast for 2030 from $13.4 billion to $17 billion
Additionally, the partnership with Oracle is expected to provide at least 1.2GW of fuel cells between 2026 and 2027
The total shipments forecast for the next five years (2026-2030) was significantly updated to 14.6GW, a 30% increase compared to the previous forecast
2️⃣ Improved profitability structure due to operational leverage
The operating margin forecast for 2026 was raised by 500 basis points to 18%, entering a significant profit expansion zone.
Increasing production capacity from 1GW today for all existing production facilities to 5GW capacity, to reduce fixed costs and maximize production efficiency.
EBITDA margin of approximately 20% in 2026 is expected to rise to 35-36% by 2030, thanks to revenue expansion and leverage of general expenses.
The company also expects a continuous reduction in the total cost of product and installation from $1,910/kW in 2026 to $1,724/kW in 2028, to improve price competitiveness.
3️⃣ Strong policy benefits.
This is where the interesting section comes in!!
Tax benefits of approximately 30% on fuel cell investments under the US IRA Act are expected to continue until 2030
This section brings us back to our previous post where we mentioned Bloom Energy.
We reported there that Gil Cisneros bought Bloom Energy shares for up to $75,000
We reported there that Gil sits on a committee dealing with the promotion of clean energy - a committee that promotes precisely the laws that benefit companies like Bloom Energy.
Today we see how these tax benefits actually affect the company's profits and stock valuation...
Smells like a conflict of interest❓