Bloom Energy stock surged 5.1% as the company prepares to join the S&P 500, with UBS analysts boosting their price target to $325 amid strong growth prospects and anticipated passive fund inflows.
Bloom Energy shares are rallying following the official announcement that the company will be added to the S&P 500 Index effective September 21, which necessitates mandatory buying from index-tracking funds. This positive sentiment is further bolstered by UBS analyst Manav Gupta, who raised his price target to $325, citing an improved valuation multiple and the expectation of a more stable institutional shareholder base post-inclusion. These catalysts build upon the company's strong fundamental momentum, highlighted by a recent second-quarter report where revenue more than doubled to $1.07 bil
Bloom Energy will join the S&P 500 Index before the market opens on September 21.
UBS raised the target to $325 based on an 11.25-times enterprise value-to-sales multiple applied to 2028 revenue estimates, accounting for expected passive fund inflows.
S&P 500 index down 0.3% in premarket, mentioned as broader market context.
Dow Jones Industrial Average down 0.8% in premarket.
Nasdaq Composite slipped 0.1% in premarket.
Bloom Energy shares climbed 5.1% in premarket trading following confirmation of its upcoming inclusion in the S&P 500 Index on September 21. UBS analyst Manav Gupta responded to the news by raising his price target to $325 from $300, citing expectations for increased passive fund ownership and institutional support.
Inclusion forces index-tracking funds and ETFs to purchase the stock to maintain their benchmark weightings, which often increases demand and institutional ownership.
UBS maintains a Buy rating and has increased its price target to $325, based on a 2028 revenue forecast of $8.9 billion and an adjusted enterprise value-to-sales multiple.