After receiving a long-term lease agreement from the Army, Bloom Energy (BE.US) rose 3% before the market on the first day of entering the S&P 500

The Zhitong Finance App notes that the stock price of solid oxide fuel cell manufacturer Bloom Energy Corp. (BE.US) rose more than 3% before the market on Monday, welcoming its first trading day in the S&P 500 index.

Last week, the US Army announced the conditional bid for a long-term lease to a consortium of Indelible and Bloom to design, finance, build, and operate commercial power generation facilities at Army sites.

What was this Army contract awarded to Bloom?

On Friday, the US Army said that this partnership between management consulting firm Indelible and Bloom Energy is one of the three winning bidders to receive conditional long-term leases to develop commercial power generation systems at Fort Detrick, Letterkenny Army Depot, and West Point.

According to the Army, these projects will use underutilized military land to deploy resilient energy infrastructure, including battery energy storage and advanced gas power generation and nuclear power, to enhance the station's power resilience and mission readiness capabilities.

According to the statement, the formal lease agreement is still in its initial stages, and the development plan will begin in 2027, with the goal of achieving initial operating capability (Initial Operating Capability) by 2030 or earlier.

Wall Street analysts point to other positive catalysts for Bloom stock

The Zhitong Finance App learned that on Friday, BMO Capital indicated that Bloom Energy had two unrelated positive news catalysts in the past week.

First, the analyst said, the New Mexico Supreme Court lifted the August 23 stay, which previously blocked the progress of the Oracle (ORCL.US) 2.45 GW data center air license approval process.

Second, Brookfield Asset Management and Bloom Energy are advancing a $6.4 billion project financing plan, which is part of a cooperative framework for data centers developed by Meta, American Tower, Equinix, and CoreWeave.

The agency said these catalysts highlight Bloom's customer reach far beyond the reach of Oracle's data centers.

BMO rated BE shares “on par with the market”, with a target price of $227, which means there is about 14.5% downside compared to the previous closing price.