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JPMorgan thinks Bloom Energy shares are cheap and investors should scoop them up as the company can benefit from President Donald Trump’s recently signed tax and spending bill. The firm upgraded the onsite power generation company to overweight from neutral on Wednesday and raised its price target to $33 per share from $18. JPMorgan’s forecast implies about 36% upside from Tuesday’s close. Bloom Energy produces electricity without combustion via solid oxide fuel cells. “With fuel cells unexpectedly qualifying again for 48E tax credits as part of the OBBB [one big beautiful bill], we believe there is upside to consensus revenue and margin estimates beginning in FY26,” analyst Mark Strouse wrote in a note. “As competing gas turbine pricing and lead times remain elevated, we believe the tax credits for fuel cells can push hesitant BE customers over the finish line and expect order activity to increase accordingly.” BE YTD mountain Bloom Energy stock in 2025. Strouse also noted that the stock is trading at a discount relative to historical levels, which could present an attractive entry point for investors. “At ~15x FY26E EV/EBITDA, BE is trading at a discount to its one-year historical NTM multiple of ~18x and three-year average of ~22x,” he said. “We believe the discount is not justified given elevated power demand needs and expect BE’s multiple to expand as additional orders are received which should increase visibility into expectations for ramping revenue and margin.” Bloom Energy shares jumped more than 6% in the premarket following the upgrade. Year to date, the stock is up more than 9%. Analysts are split on the stock. Of the 24 who cover Bloom Energy, 12 rate it a buy or strong buy, per LSEG. The remaining 12 have a hold or underperform rating.
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