Bloom Energy is positioned for "robust growth" as demand for fuel cells remains strong, according to RBC Capital Markets.
Analyst Chris Dendrinos initiated coverage of the electric and hydrogen power company with an outperform rating.
The company's increasing traction in Europe, improving cost structure and lower natural gas prices are helping its growth and profitability prospects, he added.
"Our analysis shows that BE's vertical sales approach is unlocking incremental value and that there continues to be a strong opportunity to grow the customer base," said Denidros.
He highlighted the company's "solid traction" with its customer base in the data center, telecom and health care sectors.
Persons:
Chris Dendrinos, Denidros, Bloom, — CNBC's Michael Bloom
Organizations:
Bloom Energy, RBC Capital Markets
Locations:
Thursday's, Europe