Why Jefferies Cut Bloom Energy (BE) to Underperform Despite AI Data Center Hype

Bloom Energy Corporation (NYSE:BE) is one of the AI Stocks Every Investor Should WatchOn September 24, Jefferies analyst Dushyant Ailani downgraded the stock from Hold to Underperform with a price target of $31.00 (from $24.00).

The firm has warned that investor enthusiasm may be outpacing fundamentals with uncertainty regarding growth prospects beyond 2026.

“BE is indeed a leader in a promising niche, with many bullish assumptions facing practical constraints. Given the limited visibility into post-2026 growth and some early signs of over-exuberance, we find that risks to the downside outweigh further upside at the current levels. D/g to Underperform on rich valuation. Need to see significantly incremental company-specific data points to justify current levels. PT $31.00.”

Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers.

While we acknowledge the risk and potential of BE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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