11:38 AM EDT, 09/24/2025 (MT Newswires) -- Bloom Energy's ( BE ) massive stock rally in the past year, driven by artificial intelligence hype, isn't justified by fundamentals, BofA Securities said Tuesday in a report.

High-profile deals with American Electric Power (AEP) and Oracle (ORCL), along with rapid deployment of fuel cell systems in markets constrained by grid delays, haven't led to guidance increases from Bloom, BofA said.

Bloom's Fremont 1 gigawatt facility in the San Francisco Bay Area is running at less than 50% utilization, the report said.

BofA's revenue estimates for 2026-28 trail Wall Street projections by 10% to 30%, while its forecast for earnings before interest, taxes, depreciation, and amortization is 35% to 55% below consensus.

"We see near-term growth expectations to be too high" with Bloom "trading above approximate fair value relative to intrinsic valuation and comparable companies," the report said. "We still view the long-term opportunity set to be exciting."

BofA raised its price target on Bloom stock to $24 from $21 while maintaining its underperform rating. The shares had surged more than sevenfold in the past year.

Bloom shares fell 12% in recent Wednesday trading. Jefferies downgraded the stock to underperform from hold.

Price: 68.31, Change: -9.07, Percent Change: -11.72