Mizuho Thinks This Buy-Rated Hydrogen Stock Can Surge 57% in 2025

Globe and Mail

07-05-2025

Bloom Energy Corp. (BE) is a renewable energy company that generates and distributes electricity via its proprietary Bloom Energy Servers. The power generation platform is based on solid oxide fuel cells, and converts natural gas, biogas, or hydrogen into electricity without combustion, resulting in minimal emissions.
Valued at $3.76 billion by market cap, Bloom Energy is a member of the small-cap Russell 2000 Index (RUT).
About Bloom Energy Stock
Bloom Energy has had a volatile year so far, dropping more than 26% YTD. The stock is down 34% in the last 3 months and 10.8% in the previous 5 days. Longer term, BE has gained 53% in the last 6 months, and 38.8% in a 52-week timeframe.
Bloom Energy Reports Q1 Results
Bloom Energy reported its first-quarter results on April 30, posting a loss of $23.8 million, or $0.03 per adjusted share. The loss was narrower than Wall Street's expected $0.07 per share deficit. Revenue of $326 million easily surpassed analysts' $292.2 million estimate.
The company recorded solid 38% growth in its Product sector, 195% in the Installation sector, and 92% in the Electricity sector. Adjusted gross margin of 28.7% was up from 17.5% posted in the same quarter last year. Operating profit came to $13.2 million, reversing a loss of $30.7 million reported in Q1 2024. Bloom ended the quarter with a cash reserve of $794.75 million.
The renewable energy company anticipates full-year revenue in the range of $1.65 to $1.85 billion in FY2025. Non-GAAP gross margin is expected at 29% while operating income is anticipated in the range of $135 to $165 million during the year.
BE Stock is Upgraded by Mizuho
On Monday, Mizuho upgraded Bloom Energy from a 'Neutral' rating to an 'Outperform' rating with a price target of $26, reflecting 57% upside from current levels. Mizuho cited a positive risk/reward outlook along with a re-rating chance due to new large orders on utilities, data centers, and more.
Bloom enters into multiple long-term contracts with its clients where 100MW of product sales translates to more than $1 billion of commercial value. Analyst Maheep Mandloi expects demand for fuel cells to grow which should improve margins while easing free cash flow and downplaying the cost curve.
Mandloi says that since combined gas cycle turbine plant (CCGTs) cost and lead time continue their upward trajectory, Bloom Energy's fuel cell costs appear attractive offer as a bridge or long-term solution. Since CCGTs are sold out for the next 4-7 years, this leads to transmission upgrades being halted for 7-11 years in some states. Bloom's fuel cells are capable of handling the power demand today and its lower emissions make it a quick and cleaner alternative to backup generators.
Additionally, Mandloi highlighted that Bloom has successfully managed tariffs, as reflected in their reaffirmed FY 2025 outlook, despite a roughly 100 basis point impact on gross margin due to reciprocal tariffs.
Wall Street's Take on BE
Analysts are bullish overall on the hydrogen stock, with a consensus 'Moderate Buy' rating and a mean price target of $23.59 - not quite as ambitious as Mizuho's new target.