Investing.com -- Mizuho upgraded Bloom Energy (NYSE:BE) to Outperform on Monday, citing strong risk/reward dynamics and growing demand for alternatives to conventional power sources. 

The firm set a price target of $26, down slightly from $28, but emphasized that Bloom’s positioning in the power market remains highly attractive.

“We see asymmetric risk/reward upside from marginal orders from utilities or other large load customers,” Mizuho analysts wrote. 

As gas turbine options face long lead times and rising costs, Bloom’s solid oxide fuel cell technology offers a faster, lower-emission alternative. 

“CCGT costs and lead times continue to trend upward, making Bloom Energy’s fuel cells an attractive proposition,” said the firm.

Bloom’s relevance is said to be growing, in part due to constraints in the broader power infrastructure. 

Mizuho noted that combined cycle gas turbines (CCGTs) are “sold out for 4–7 years” and that transmission upgrades in some states are delayed up to 11 years. 

That dynamic, along with a 15-year AEP-Cologix deal in Ohio, “suggests we could see more deals with large load customers extending until 2040,” added the firm.

While the recent departure of CFO Dan Berenbaum was flagged as “surprising,” Mizuho said it “doesn’t impact market opportunity.” 

Meanwhile, Bloom’s ability to reaffirm 2025 guidance despite tariff headwinds reinforces management credibility. “Strategies include using USMCA suppliers, reclassifying components, and reallocating orders,” analysts said.

Mizuho sees room for multiple expansion, noting that Bloom’s NTM EBITDA multiple had previously reached peer levels before pulling back. “We see potential for Bloom’s multiple to expand toward GEV’s on future large customer/data center deal announcements,” the firm stated.

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