Bloom Energy Tumbles 8% Even as UBS Lifts Its Price Target to $350; FuelCell Energy Slides 8%, Plug Power Drops 3%

A raised analyst price target wasn’t enough to support Bloom Energy (NYSE:BE) stock, and the selling has spread across fuel cell and hydrogen names. BE stock is at $269.16, down 8% this afternoon. Fresh research from two firms describes a demand picture for the company that reaches beyond data centers, yet Bloom Energy shares are still slipping.

Meanwhile, FuelCell Energy (NASDAQ:FCEL) stock is at $16.85, down 8%, a decline in step with Bloom Energy stock. Plug Power (NASDAQ:PLUG) stock is at $1.72, down 3%, a softer pullback than the other two fuel cell names. Those moves leave shares of all three U.S.-listed companies lower, though the size of each drop varies widely.

Hydrogen stocks as a group are lower too. The Global X Hydrogen ETF (NASDAQ:HYDR) is at $41.93, down 4%, a smaller loss than shares of Bloom Energy and FuelCell Energy are posting. Equities overall are only slightly lower, with the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) at $772.34, down 0.6%. Such a gap points to selling concentrated in the fuel cell corner of the market.

Two Analyst Calls Fail to Stop the Slide

UBS lifted its price target on Bloom Energy to $350 and maintained a Buy rating on the shares. Bernstein repeated a Market Perform rating and a $282 price target, stating that Bloom Energy is already positioned to participate in the broader power buildout beyond supplying data centers directly. The firm added a call for greater visibility into the company’s backlog, contracting activity and longer-term growth expectations.

Bloom Energy sells solid oxide fuel cell systems that generate electricity at the site where it is consumed. On-site generation is the reason. data center operators and utilities have become the demand the company is scaling against, and Bloom Energy has been expanding its manufacturing capacity to keep up. Serving both groups widens the company’s end market beyond a single industry.

FuelCell Energy builds a different fuel cell technology at far smaller scale and has been reshaping its cost base. Plug Power sells hydrogen fuel cell systems and provides the gas and filling infrastructure behind them. This combination ties Plug Power to hydrogen supply economics, a separate driver from the power expansion Bloom Energy is addressing.

Bull and Bear Cases Read the Same Research Differently

Bloom Energy’s bull case rests on two separate firms examining the company this week, with both describing demand that extends past data centers into utility power. One of those firms went further by raising its target, which points to growing conviction in the company’s on-site power systems.

Skeptics can point to the repeated Market Perform rating, which signals that much of Bloom Energy’s opportunity is already recognized in the shares, and weakness across the whole hydrogen and fuel cell group adds a second concern, since Bloom Energy shares are falling alongside the rest of the sector.

What to Watch Next

Traders can watch for whether Bloom Energy stock steadies once the fuel cell group stops slipping, as two published reference points, the raised target and the repeated rating, now frame the debate over the company’s valuation. Firmer trading in the HYDR hydrogen fund could signal that the group-wide pressure on Bloom Energy and its peers is easing.

Bloom Energy’s backlog and contracting updates are the next test of the research. Investors can watch for signs that the company is converting data center and utility interest into signed business. Any shift in those disclosures could change how the market reads the company’s growth path.

Contact [email protected] for any questions or corrections.