BE Stock Soars Overnight On S&P 500 Inclusion: Analyst Sees Upside Of Over 28%

Shares of Bloom Energy Corp. (BE) soared nearly 7% higher overnight late Monday after closing up 7.35% on Friday after its inclusion in the S&P 500 index for the third quarter.

Meanwhile, UBS analyst Manav Gupta raised the price target on BE stock to $325 from $300 and maintained a ‘Buy’ rating, implying upside of more than 28% from its last close.

Gupta said, as per The Fly, that historically, a stock’s inclusion in the S&P 500 has resulted in a meaningful increase in passive ownership. Companies included in the index see an increase in share purchases from index funds. The prestige of inclusion alone can result in higher prices.

The analyst added further that the inclusion is "a significant positive catalyst for the stock."

BE stock also has the advantage of being the first energy stock to join the index since 2022.

Cheniere Energy Inc. (LNG) was another energy stock that was touted to be included in the S&P 500, but ultimately did not make the cut.

On Stocktwits, retail sentiment around BE stock was ‘bullish’ at the time of writing, amid ‘high’ message volumes.

Another user said, “$BE people are underestimating this. It’s going to 1-2k year from now. Been in since 50 around this time last year and people called me crazy saying 250 a year from then.”