What Happened?

Shares of electricity generation and hydrogen production company Bloom Energy (NYSE: BE) jumped 15.1% in the morning session after J.P. Morgan upgraded the stock. The bank raised its rating on the fuel-cell manufacturer to "overweight" from "neutral" and significantly increased its price target to $33 from $18. This new target suggests a potential upside of nearly 36% from the stock's previous closing price. J.P. Morgan's positive outlook is based on the idea that elevated pricing and long lead times for competing gas turbines could push more customers toward Bloom's fuel cell solutions, especially with the help of fuel cell tax credits. The investment bank believes this could lead to stronger product margins for Bloom Energy, driven by higher factory utilization and increased pricing power.

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What Is The Market Telling Us

Bloom Energy’s shares are extremely volatile and have had 64 moves greater than 5% over the last year. But moves this big are rare even for Bloom Energy and indicate this news significantly impacted the market’s perception of the business.

Bloom Energy is up 24.7% since the beginning of the year, and at $29.14 per share, it is trading close to its 52-week high of $29.81 from January 2025. Investors who bought $1,000 worth of Bloom Energy’s shares 5 years ago would now be looking at an investment worth $2,240.

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