Bloom Power hosts investor convention, analysts optimistic

Bloom Power (NYSE:) held its Analyst Day on Tuesday, the place it reiterated the quick and long-term steerage. For 2023, the corporate expects $1.4-$1.5 billion in income (vs. consensus of $1.46B), and roughly 25% adjusted gross margin (vs. consensus of 25%). The corporate’s long-term monetary plan contains 30-35% annual income progress by way of 2031, 30% adjusted gross margin by 2025, and 15% adjusted working margin by 2025.

Morgan Stanley reiterated its Obese score and $30 value goal on the inventory, noting that the Investor Day shines a lightweight on the corporate’s multi-year progress alternative and margin enchancment.

In keeping with the financial institution, the sturdy multi-year progress tailwinds inside the firm’s gasoline cell and electrolyzer enterprise, achievable near-term margin enchancment, and robust stability sheet place usually are not correctly mirrored in its present valuation.

One other agency, KeyBanc, shared its views on the occasion, reiterating its Obese score and $32 value goal on the inventory.

In keeping with the agency, Bloom Power provides vital worth (at <2x 2024E gross sales) and is a horny strategy to put money into the power transition even with out affording any significant credit score for the upcoming progress in electrolyzer gross sales.

Shares closed with almost a 7% loss right now.