BMO Capital analyst Ameet Thakkar has maintained their neutral stance on BE stock, giving a Hold rating today.
Ameet Thakkar’s rating is based on several factors that present a mixed outlook for Bloom Energy. While the company’s revenue and gross margin guidance for FY 2025 are stronger than expected, there are concerns about the lack of backlog growth. This stagnation in backlog, even when adjusted for changes, contradicts Bloom Energy’s commentary on data center demand, raising questions about future revenue growth.
Additionally, the operating margin was slightly below expectations, which limits potential upward revisions in EBITDA. The decision by Bloom Energy to stop providing volumetric and ASP data adds to the uncertainty. Although the company ended FY 2024 on a strong note with positive free cash flow, the unchanged product backlog from previous years and modest service backlog growth do not inspire confidence in long-term growth prospects. Consequently, the stock is trading at a high multiple of 2026 estimated EBITDA without sufficient backlog growth to support forward revenue growth assumptions, leading to a Hold rating.
According to TipRanks, Thakkar is an analyst with an average return of -8.3% and a 41.33% success rate. Thakkar covers the Technology sector, focusing on stocks such as SolarEdge Technologies, Enphase Energy, and First Solar.