Bloom Energy (BE) remains well-positioned for long-term growth in fuel cells and electrolyzers and SK Group's partial stake divestment is not seen as a shift in the strategic relationship, RBC Capital Markets said in a note Friday.

According to the note, the divestment likely reflects SK monetizing an investment that supported Bloom's early commercialization and market growth.

RBC said Bloom has built a leading position in stationary fuel cells in the US and South Korea, with revenue expected to rise to about $1.75 billion in 2025 from $1.47 billion in 2024. It also projected that Bloom will achieve sustainable free cash flow next year, driven by product cost reductions and stronger operating leverage.

The firm said Bloom's electrolyzer business remains at an early stage but has long-term upside given the system's efficiency advantage over current technologies. RBC estimated electrolyzer sales could contribute roughly two-thirds of the company's targeted $1 billion to $2 billion in decarbonization revenue in 2026.

RBC maintained its outperform rating on Bloom Energy and a $26 price target.