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.

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