The stock of hydrogen power specialist Bloom Energy(NYSE: BE) has nearly 40% upside potential. Well, it does if you accept the latest evaluation of the company from one of the more bullish analysts tracking its fortunes. On the basis of information he received about Bloom Energy's looming future, he reiterated his quite positive take on its prospects.
Still a buy, by the by
In a new research note, RBC Capital Markets analyst Chris Dendrinos reiterated his outperform (i.e., buy) recommendation on Bloom Energy's shares. He also maintained his $15 price target, which is 37% higher than the stock's most recent close.
In the note, Dendrinos said that information derived from a public records request revealed that the company is expanding production capacity at its multi-gigawatt manufacturing plant in Fremont, California. The 164,000-square-foot factory was opened in July 2022.
"We believe the addition of a new print line and a fifth production line at Fremont could be indicative of increasing demand and think shares will respond favorably to the information," the analyst wrote.
A good play on our environmental future
Optimism is in the air with Bloom Energy, not least because the company's fuel of choice -- hydrogen -- emits only water when consumed in a fuel cell, making it a potentially go-to choice for green energy for businesses and consumers. The company's fundamentals are improving, too, with a nearly 12% year-over-year rise in sales in its most recently reported quarter and a much narrower adjusted net loss.
Public- and private-sector entities are constantly looking for solutions to cut dangerous emissions and make the environment cleaner. If Dendrinos' information is accurate, it seems demand is rising for the hydrogen-based solution that it's offering in the marketplace. Given that, its stock could very well be undervalued currently, thus worthy of a buy.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
