Key Takeaways
- Bloom Energy shares surged over 6% following the company’s dismissal of Hunterbrook Capital’s allegations as “false and misleading”
- The short seller argued that Bloom’s 5GW production ambitions would consume virtually all available global scandium oxide reserves
- Bloom countered that it maintains adequate scandium oxide inventory for both present requirements and expansion plans, without Chinese dependence
- BE shares dropped approximately 12% Wednesday following the short report’s release before recovering Thursday
- The company reports quarterly results July 28, with Wall Street forecasting $0.36 EPS and $804 million in revenue
Bloom Energy (BE) stock experienced a robust recovery Thursday, gaining over 6% after the fuel cell manufacturer issued a forceful rebuttal to a short seller’s report that had hammered shares a day earlier.
Hunterbrook Capital released a research note Wednesday alleging that Bloom had minimized its dependence on Chinese scandium sources. The rare earth element scandium oxide serves as a critical component in Bloom’s solid oxide fuel cell technology. The firm simultaneously revealed it maintained a bearish position on BE shares.
Hunterbrook’s central thesis rested on a supply-demand analysis suggesting Bloom’s expansion plansâfrom approximately 1GW of installations in 2026 to 5GW per yearâwould necessitate roughly 220 tons of scandium oxide annually. With worldwide production forecast at merely 240 tons, the short seller characterized these growth objectives as “physically and commercially unattainable.”
The report also questioned revenue composition, highlighting that 74% of Bloom’s fourth quarter 2025 revenue originated from Brookfield joint ventures. Hunterbrook speculated these arrangements might represent project-finance structures rather than genuine customer relationships.
Additional concerns centered on operational delays at Oracle’s Project Jupiter initiative and an AEP fuel cell contract, while challenging Bloom’s $20 billion unaudited backlog against merely $492.6 million in audited remaining performance obligations.
Company Issues Strong Rebuttal
Bloom Energy countered Thursday morning, characterizing the allegations as “false and misleading.” Management urged investors to consult the company’s audited financial statements and SEC filings instead of relying on the short seller’s assertions.
Regarding scandium availability, Bloom affirmed it possesses sufficient material to fulfill existing customer commitments and its entire backlog. The company explicitly stated it operates independently of Chinese scandium sources and maintains visibility into supply chain capacity supporting annual production of up to 25GW.
Bloom had telegraphed its response Wednesday, informing Benzinga it was “reviewing the report and will correct the record,” while pointing to a July 7 blog post addressing scandium oxide supply chain matters.
What Analysts Are Saying
Wall Street maintains a Moderate Buy consensus on BE stock, featuring nine Buy recommendations, 10 Hold ratings, and zero Sell ratings over the trailing three months. The average analyst price target stands at $287.05, suggesting approximately 9.3% appreciation potential from present levels.
Recent analyst activity reflects a generally optimistic but cautious outlook. Baird reaffirmed its Outperform stance with a $310 target on July 9. UBS elevated its target to $350 with a Buy rating on July 1. Jefferies maintained its position at $310, though it modestly lifted its Hold-rated target to $246 on July 6.
BE stock has delivered exceptional performance, climbing 785% over the trailing twelve months. Shares currently trade above both the 100-day and 200-day moving averages, though they remain beneath the 20-day and 50-day averages following the recent decline.
Critical resistance levels emerge around $303, while key support sits near $247.50.
The company releases quarterly results on July 28. Consensus estimates call for EPS of $0.36, up from $0.10 in the year-ago period, and revenue of $804 million, approximately doubling the $401 million recorded in last year’s corresponding quarter.
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