American Electric deal a ‘big win’ for Bloom Energy, says Evercore ISI

Evercore ISI reiterated an Outperform rating and $22 price target on Bloom Energy (BE) after American Electric Power (AEP) said it has an agreement in place to secure up to 1 gigawatt of Bloom’s solid oxide fuel cells for data centers and other large energy users. While the firm believes the announcement will be a “tremendous positive” for Bloom shares, it is important to note that the agreement does not seem to constitute a firm order and it is an order for “up to” 1 GW, which Evercore believes gives AEP the right to buy, but does not require or bind them to purchase that many, the analyst tells investors in a research note. The firm added that the deal is a “big win” for Bloom and likely a much bigger deal than anyone had contemplated.