Mizuho Says Bloom Energy Stock Is a ‘Buy.’ Here’s Why, and Whether You Should Snap Up BE Here.

Leading broker Mizuho upgraded the stock of energy infrastructure services provider Bloom Energy (BE) to an “Outperform” rating following its solid Q2 2026 results. Highlighting the company's revenue and shipments that were above its expectations, Mizuho reckons Bloom to be "a differentiated onsite power solution, supported by its time-to-power advantage, greater than $27B financing capacity, validation from all major U.S. hyperscalers, and a backlog that continues to outgrow revenue."

The price target was, however, reduced to $242 from $285 as service revenues were not up to the mark. Still, the price reflects an upside potential of about 11% from current levels.

About Bloom Energy

Founded in 2001, Bloom is a unique energy company that specializes in manufacturing solid oxide fuel cell (SOFC) systems. These cells generate electricity on-site for customers and thus have become increasingly relevant for hyperscale data centers and AI companies that are perpetually energy-starved. The company also makes solid oxide electrolyzers (SOECs) for hydrogen production, another paradigm of renewable energy that is gaining major traction worldwide.

Valued at a market cap of $58.5 billion, BE stock has been on a roll this year, rallying 152%. And like many new-age energy companies, Bloom also does not pay any dividends.

So, now that Mizuho has given its endorsement for Bloom, does that seal its fate as a sound investment? Or are there any possible cracks in the thesis? Let's analyze.

Eye-Catching Q2 Does Not Help Valuations

AI is making the world go round, and if your company is providing them with a valuable commodity like clean energy, investors will be running towards the stock. That is what Bloom has been experiencing in recent times. This is reflected in the company's fundamentals as well.

Q2 2026 saw a first for the company, with its revenues surpassing a billion dollars for the first time. At $1.065 billion, Bloom delivered overall revenue growth of 166% from the previous year. Product revenue, which includes the company's core SOFC systems, moved up by an even sharper rate of 215.4% to $935.4 million.

Bloom achieved this with a notable improvement in gross margins to 34.3% from 28.2%

Meanwhile, earnings jumped to $0.78 per share from a mere $0.10 per share in the year-ago period, coming in much ahead of the consensus estimate of $0.41 per share. Also, this was the seventh consecutive quarter of earnings beat from the company.

For the full year, Bloom expects revenue to be between $3.9 billion and $4.2 billion, the midpoint of which would denote another doubling of revenue for the company. Notably, EPS is expected to be in the range of $2.55 and $2.85. At its midpoint, this would denote an annual growth rate of more than 3.5 times.

Cash generation also remained solid, with net cash from operating activities coming in at $226.4 million compared to an outflow of $213.1 million in the prior year. Overall, the company ended Q2 2026 with a cash balance of $2.67 billion, well above its short-term debt of about $31 million.

Additionally, a key development in the quarter was the deepening of the company's existing partnership with private equity firm Brookfield Asset Management, which increased the financing capacity available for customer projects to $25 billion. The arrangement would involve customers adopting Bloom's systems without bearing the full upfront capital cost, potentially accelerating deployments.

Yet, Mizuho's assertion that the stock valuation is attractive may be misplaced. Its forward P/E, P/S, and P/CF of 75.66, 14.69, and 89.66 are all much above the sector medians of 20.69, 1.87, and 15.82, respectively.

Blooming Bloom

Having said that, Bloom Energy continues to scale new heights as it remains one of the few energy companies that sells both SOFC systems for electricity generation and SOEC systems for hydrogen production. And this is helping the company to cater to the burgeoning AI industry, where energy remains a crucial component of the overall buildout.

CEO K.R. Sridhar iterated as such when he said hyperscalers, AI labs, neocloud providers, and colocation operators are increasingly choosing Bloom's fuel cells over conventional combustion-based solutions because they can be deployed much faster than waiting for new grid connections.

My last analysis of Bloom focused on some of the aspects that are leading to the company's choice as a preferred energy provider for hyperscalers. BE stock is down 28% since then as valuation compression and sector rotation within the AI trade played their part. However, the company's perceived dependence on Chinese-sourced scandium oxide used in its SOFCs weighed on investor sentiment, although Bloom later refuted those claims.

Moreover, not willing to be solely dependent on SOFCs, Bloom is also developing integrated carbon-capture capabilities for natural gas-powered systems. This is until hydrogen becomes prevalent. And when it does, Bloom is expected to swoop in with its SOECs, which the company claims to produce hydrogen with about 80% electrical-to-hydrogen efficiency when industrial waste heat is available. Earlier, the company also stated that its technology can produce 20–25% more hydrogen per megawatt of electricity than conventional alkaline or PEM electrolyzers under suitable operating conditions.

Finally, Bloom is also in the process of expanding capacity at its flagship Fremont, California facility by investing $100 million. With this, Bloom will be doubling its annual production capacity to 2GW from 1GW by the end of 2026.

Analyst Opinion of BE Stock

Thus, analysts remain cautiously optimistic about BE stock, attributing to it a consensus rating of “Moderate Buy.” The mean target price of $267.46 indicates a potential upside of about 23% from current levels. Out of 27 analysts covering the stock, 11 have a “Strong Buy,” two have a “Moderate Buy,” 13 have a “Hold,” and one has a “Strong Sell” rating.