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Morgan Stanley sees strong earnings contribution margin for Bloom from AEP deal
The Fly

Morgan Stanley sees strong earnings contribution margin for Bloom from AEP deal

After Bloom Energy (BE) announced yesterday that it has entered into an agreement to supply up to 1 GW of its solid oxide fuel cells to American Electric Power (AEP), with an initial order of 100 MW and further expansion expected in 2025, Morgan Stanley said this announcement validates the thesis that fuel cells will have a critical role to play in solving time-to-power constraints. The firm, which expects a strong earnings contribution margin from these incremental volumes, estimates up to 150% upside to the firm’s adjusted EBIT forecast from this announcement and keeps an Overweight rating and $20 price target on Bloom shares.

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