Fuel cell included in the exemption Bloom Energy (BE.US) stock price surged by 18.15%, JP Morgan upgraded its rating to hold.

date
10/07/2025
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GMT Eight
Tax exemption policies will enhance Bloom Energy's pricing power in negotiations with data center customers, while also stimulating demand from price-sensitive non-data center customers.
Bloom Energy (BE.US) saw its stock price rise sharply by 18.15% on Wednesday, hitting a new high since January. This surge was due to JPMorgan Chase upgrading the company's stock rating from neutral to overweight, and significantly increasing the target price by 83% to $33 (up from $18). The core reason for this rating adjustment is the recent inclusion of fuel cells in the scope of clean energy investment tax credits under the newly passed "Beautiful Act" in the United States. This policy favorably impacts the company's revenue and profit margins, with significant boosts expected to start from the 2026 fiscal year. JPMorgan analyst Mark Strauss pointed out that the tax credit policy will enhance Bloom Energy's pricing power in negotiations with data center customers, and stimulate demand from price-sensitive non-data center customers. Despite the potential impact of the Trump administration's July 7 executive order on renewable energy investment enthusiasm through adjustments in the safe harbor rule, the current high prices and extended delivery periods in the gas turbine market present a dilemma, whereas fuel cells, with their tax credit advantages, are poised to accelerate the replacement of hesitant gas turbine customer orders, thereby driving overall order growth. Strauss further analyzed that with the inclusion of the 48E tax credit system, Bloom Energy's growth curve will steepen. Based on median estimates for the 2025 fiscal year, the company's revenue growth is expected to reach 19%, benefiting both from enhanced premium capacity brought by data center customers and the expansion of price-sensitive customer groups. Of particular note is that with improved production capacity utilization and ongoing cost control capabilities, Bloom Energy's product gross margin will receive additional support, laying a foundation for long-term profit improvement.