J.P. Morgan upgraded BE to "overweight" from "neutral"
The shares of Schaeffer's 2025 Top Stock Pick Bloom Energy Corp (NYSE:BE) are up 12.5% to trade at $27.33 at last check, on the heels of an upgrade from J.P. Morgan to "overweight" from "neutral" and price-target hike to $33 from $18. The analyst noted fuel cell tax credits, higher factory absorption, as well as incremental pricing power.
There's room for additional firms to strike a bullish tone, as 11 of the 20 in question still sport a "hold" or worse rating. Plus, the 12-month consensus target price of $23.56 is a 14.2% discount to current levels. A short squeeze may also come into play, as 24.1% of the stock's available float is sold short, which is equivalent to nearly nine days worth of pent-up buying power.
The security is now pacing for its best single-day percentage gain since November, and hit its highest level since February right out of the gate. Support from the 20-day moving average has been guiding BE higher since May, helping it break past resistance at $24 last week. So far in 2025, the stock added 23.5%.
Options bulls are piling on today, with 9,524 calls across the tape -- 4 times the volume typically seen at this point -- compared to just 1,496 puts. The most popular contract is the July 28 call.
Premiums can still be had for a bargain, per Bloom Energy stock's Schaeffer's Volatility Index (SVI) of 33% that sits in the 12th percentile of readings from the past 12 months. This implies options players are pricing in lower-than-usual volatility expectations.