Bloom Energy - Amazing Run, Time To Sell
Seeking Alpha Analyst Since 2019
Former WSJ and II ranked sell-side analyst covering special situations and TMT.
Summary
- BE is up nearly 30% after the alternative-energy company said it is making inroads into the commercial hydrogen-fuel market.
- The Company is making hydrogen-powered fuel cells and electrolyzers that produce renewable hydrogen, with the first cells expected to be sold in South Korea next year through a partnership.
- With the stock up 300% recently, we believe BE is fully-valued and recommend investors take profits, noting that the BE has a substantial convert note @ $11.25 that needs refinancing.
- Trading at a $2.8BN valuation or more than 3x revenues, we see downside to BE. Accordingly, we are downgrading the stock to SELL from STRONG BUY pending potential financing.
BE Cap Table @ $17.50
Analyst's Disclosure: I am/we are short BE.
We intend to provide additional commentary in our ongoing coverage of BE.
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