This year’s rally has really picked up the pace in the third quarter, with most major indices up yet again today. Companies in higher-growth sectors appear to be receiving more love, as investors digest a range of economic reports released this week. Among today’s winners is Bloom Energy (NYSE:BE). Shares of BE stock are up more than 9% at the time of this writing.
Aside from various macro catalysts, there’s one company-specific catalyst that has caught the eye of investors when it comes to Bloom Energy. Specifically, analysts at RBC Capital initiated coverage of the energy player today, putting forward an aggressive $24 price target as well as an “outperform” rating.
In a note, analysts commented the following:
“Our outlook is underpinned by our belief that emissions regulation and social pressures to decarbonize will remain a tailwind for adoption, and that customers will continue to favor BE’s value proposition.”
Overall, the view of RBC’s analyst team is that as governments, corporations and individuals look to limit their carbon footprints, Bloom Energy will play an important role in this transition.
Let’s dive into what investors should make of this news.
BE Stock Surges on Positive Analyst Note
Generally speaking, Wall Street analysts are intimately tuned into the inner workings of specific companies in specific industries. In the case of Bloom Energy, it’s clear that RBC analysts have taken a hard look at the company relative to its competitors and like what they see.
Specifically, analysts point to growth in the electrolyzer market and Bloom’s potential given its wider-spread adoption. As the market for green hydrogen grows, it’s the view of experts that Bloom Energy could be poised to meet that demand. Thus, for those bullish on the green energy trend, this is clearly a stock to watch closely right now.
Of course, it’s hard to determine just how much of today’s price action is tied to the broader markets, relative to Bloom’s internal fundamental outlook. Analysts are bullish and investors appear to be taking an increasingly bullish view on BE stock. However, we’ll have to see if this momentum lasts given the uncertainty that still hangs over certain pockets of the market right now.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.