Bloom Energy’s Biggest Selloff In Months Has Created A Wall Street Divide – Analyst Says Market May Be Overreacting

• Analyst Manav Gupta said the recent pullback in the shares was “an attractive buy opportunity,” adding that concerns about BE’s raw material sourcing “are overstated.”
• Susquehanna also raised its price target on Bloom Energy to $298 from $293 while reiterating a ‘Positive’ rating, according to TheFly.
• Retail traders on Stocktwits were also ‘bullish’ about the company despite the recent selloff.

Shares of Bloom Energy Corp. (BE) fell nearly 5% in overnight trading on Sunday after two back-to-back short-seller reports alleged risks stemming from its dependence on Chinese materials.

However, Wall Street has reiterated its optimism for the company, while retail traders are also ‘bullish’ on the stock despite the selloff.

What Are The Allegations?

Last week, two short-seller reports from Hunterbrook Research and Crossroads Capital alleged that Bloom Energy has understated its reliance on Chinese-sourced scandium, a key material used in its solid oxide fuel cells.

The firms claimed that the company’s supply chain remains heavily tied to China and argued that its long-term growth targets are unrealistic because the scandium volumes required to scale production could consume a significant portion of global supply. Hunterbrook cited trade data, corporate filings, and supplier comments to support its claims.

Bloom Energy rejected the allegations in an SEC filing, stating it has sufficient scandium oxide supplies to meet current demand and backlog, is not dependent on China for supply, and has visibility into its supply chain to support production of up to 25 gigawatts of fuel cells annually.

BE Stock: Wall Street Support

BE stock lost more than 17% last week after a pair of short-seller reports deepened the sell-off in the company’s shares.

However, Wall Street is still optimistic about the company. UBS reportedly reiterated its ‘Buy’ rating on Bloom Energy.

According to a CNBC report, the firm’s analyst, Manav Gupta, said the recent pullback in the shares was “an attractive buy opportunity, as we believe concerns surrounding raw material sourcing—and scandium in particular—are overstated.”

Gupta reportedly backed the company’s claims, noting that Bloom has developed a proprietary process to secure the scandium that it needs. UBS currently has a price target of $350 on BE stock, implying about a 43% upside from its last close.

Susquehanna raised its price target on Bloom Energy to $298 from $293 while reiterating a ‘Positive’ rating, according to TheFly. The firm updated its forecasts ahead of the company's second-quarter results, noting that accelerating power demand remains the primary driver for the sector.

What’s Retail Saying?

On Stocktwits, retail sentiment around BE stock was in the ‘bullish’ territory at the time of writing amid ‘high’ message volumes. The stock was also trending on the platform.

One bullish user dismissed the short-seller reports, saying, “$BE amazing how many people haven’t figured out how these scams work they drive the price down to buy cheap get with it people.”

Another user said BE stock “is a buy.”

Shares of the company have surged more than 157% so far this year.

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