Key Takeaways
- Bloom Energy shares surged more than 6% following the company’s dismissal of Hunterbrook Capital’s report as “false and misleading”
- The short seller alleged Bloom’s 5GW production goal would consume nearly the entire global scandium oxide supply forecast
- Bloom countered that it maintains adequate scandium oxide reserves for current and future expansion, independent of Chinese sources
- BE shares had plunged approximately 12% on Wednesday following the short report’s publication before recovering Thursday
- The company reports quarterly results on July 28, with Wall Street projecting $0.36 EPS and $804 million in revenue
Bloom Energy (BE) shares rallied over 6% during Thursday’s session as the clean energy company issued a forceful rebuttal to a short seller’s report that had triggered a double-digit decline just one day earlier.
Hunterbrook Capital released a research report Wednesday targeting Bloom with allegations that the company had downplayed its dependence on Chinese scandium suppliers. Scandium oxide serves as a critical component in Bloom’s solid oxide fuel cell technology. The firm simultaneously announced it had established a short position in BE shares.
Hunterbrook’s central thesis centered on a supply-demand analysis claiming that Bloom’s expansion plans from approximately 1GW of deployments in 2026 to 5GW per year would necessitate roughly 220 tons of scandium oxide. With worldwide production projected at only 240 tons, the short seller characterized the manufacturing objectives as “physically and commercially unattainable.”
The research report also questioned revenue composition, highlighting that 74% of Bloom’s Q4 2025 revenue originated from Brookfield joint ventures. Hunterbrook suggested these arrangements might represent project-finance entities rather than genuine end-use customers.
Additionally, the report cited setbacks at Oracle’s Project Jupiter facility and an AEP fuel cell contract, while contrasting Bloom’s $20 billion unaudited backlog against merely $492.6 million in audited remaining performance obligations.
Company Issues Strong Rebuttal
Bloom Energy released its response Thursday morning, categorically rejecting the allegations as “false and misleading.” The firm urged investors to consult its audited financial statements and SEC filings rather than the short seller’s claims.
Regarding scandium availability, Bloom asserted it possesses sufficient supply to fulfill existing customer commitments and its entire backlog. The company emphasized its scandium sourcing is independent of China, adding that it has identified supply chain pathways capable of supporting up to 25GW of annual fuel cell manufacturing.
The company had telegraphed its forthcoming response. On Wednesday, Bloom informed Benzinga it was “reviewing the report and will correct the record,” pointing to a July 7 company blog post it had previously published addressing scandium oxide concerns.
Analyst Perspective
Wall Street maintains a Moderate Buy consensus rating on BE stock, with nine Buy recommendations, 10 Hold ratings, and zero Sell ratings issued over the past three months. The consensus price target stands at $287.05, suggesting approximately 9.3% potential upside from current trading levels.
Recent analyst activity reflects cautious optimism. Baird reaffirmed its Outperform rating with a $310 price objective on July 9. UBS elevated its target to $350 while maintaining a Buy rating on July 1. Jefferies kept its Hold rating while modestly increasing its price target to $246 on July 6, though it had previously set a $310 target.
BE stock has delivered exceptional performance, climbing 785% over the trailing twelve months. The stock trades above both its 100-day and 200-day moving averages, though it remains below its 20-day and 50-day averages following the recent downturn.
Resistance appears around $303, while support is established near $247.50.
The company’s earnings release is scheduled for July 28. Wall Street analysts anticipate earnings per share of $0.36, up from $0.10 in the year-ago period, alongside revenue of $804 million, approximately double the $401 million reported in last year’s comparable quarter.
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