2024-02-01 11:43:28 ET
Summary
- Leading stationary fuel cell system provider Bloom Energy's growth prospects have deteriorated in recent months.
- Sales to the all-important Korean market have experienced a dramatic decline in 2023 with headwinds likely to persist for the time being.
- The domestic market has also proved more challenging than anticipated, with anticipated large-scale Bloom Energy Server deployments to Amazon's AWS unit not likely to commence anytime soon.
- Even after some recent estimate reductions, analysts on average still project more than 20% top line growth in 2024 and the company to turn profitable while I would expect management to guide revenues flat to down on a year-over-year basis.
- Consequently, I am downgrading shares from "Sell" to "Strong Sell" and would advise speculative investors to consider a short position going into the company's Q4 earnings report next month.
Note:
I have previously covered Bloom Energy Corporation ( BE ), so investors should view this as an update to my earlier articles on the company.
It's been a rough start to the year for leading U.S. exchange-listed fuel cell players, with stationary power generation system provider Bloom Energy Corporation, or "Bloom Energy", being among the worst performers:
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Bloom Energy: Short Opportunity Ahead Of Q4 Results And 2024 Outlook