Bloom Energy stock bounces off 11-month low after Raymond James gets even more bullish

Shares of Bloom Energy Corp

rallied 3.5% in premarket trading Tuesday, to bounce off an 11-month closing low in the previous session, after Raymond James analyst Pavel Molchanov said he was even more bullish on the hydrogen play, citing a more attractive valuation. Molchanov raised his rating to strong buy from outperform, saying the stock’s recent underperformance, as it has shed 41.0% year to date while the Invesco WilderHill Clean Energy ETF

has lost 28.6% (the S&P 500

has rallied 14.5% this year), has made it more attractive. “As a textbook story stock in one of clean tech’s most popular but polarizing verticals, Bloom is a high-beta, aggressive growth idea,” Molchanov wrote in a note to clients. “We look at Bloom’s positioning vis-à-vis energy resilience solutions–in the context of climate adaptation, specifically the growing prevalence of grid outages–as an aspect of the business that is not fully appreciated.” He said the upcoming foray into electrolyzers offers pre-revenue optionality, bolstered by targets in European Union climate policy.

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