It’s been a good season for clean energy producers. U.S. politicians have recognized the need for investment in sustainable energy solutions, and the potential for big spending is on the table. News of this development has continued to send fuel cell stocks shooting up. And today, good times continue to roll for fuel cell companies. In particular, Bloom Energy (NYSE:BE) looks like a winner after receiving a bullish analyst call. As a result, BE stock is climbing.
What Happened with BE Stock
Despite the clean energy boom, it’s been a turbulent year for BE stock, which is finally rebounding from an 11-month low. This is due in no small part to a recent report issued by Raymond James analyst Pavel Molchanov, who upgraded his rating of the stock to a “strong buy.” He cited the company’s high valuation, describing himself as “even more bullish” on it as a hydrogen play.
It didn’t take long for BE stock to start rising today following the release of Molanchov’s upgrade and statement. As of this writing, it is up 8% for the morning.
Yesterday saw shares decline by more than 8%, but as of now, their trajectory is clearly moving upward.
What It Means
Molchanov described BE stock as a “high-beta, aggressive growth idea,” calling it a “textbook story stock in one of clean tech’s most popular but polarizing verticals,” indicating that he considers the stock to be undervalued.
This is exactly the type of positive attention that can help a stock shake a losing streak, particularly as demand within its sector is expanding and growing. Fuel cell technology hasn’t received as much media attention as other areas of clean energy. With the addition of an impending influx of government investment in the sector, there is nothing stopping BE stock from moving into the green.
Why It Matters
There’s plenty of evidence to support Molanchov’s assessment that BE stock is undervalued. Bloom Energy is trading a lower levels than some of its fuel cell competitors like Plug Power (NASDAQ:PLUG), making this an opportune time for a bullish play.
If you’re considering going long on clean energy, as investors should be right now, Bloom is an excellent company to watch as it reverses its losing streak. The future of energy is green, and fuel cell technology is poised to play an important role. Investors would be well served to pay attention now while the companies behind it are still relatively undervalued.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.