There are several promising tailwinds ahead for Bloom Energy , according to Morgan Stanley. The bank named the stock a top pick, reiterating reiterated its overweight rating on shares. It also maintained its $29 price target, implying shares could jump 92% from where they closed on Tuesday. Bloom Energy “is our Top Pick in clean tech, [and] a key beneficiary of several key themes,” according to analyst Andrew Percoco. He cited the growing value proposition of on-site electrical generation, or distributed energy. Rising grid instability and grid capacity limitations will further boost the fuel cell maker, said Percoco. “The growing demand for BE’s fuel cell technology, coupled with its ability to consistently reduce its product costs by 10%-15% per year should drive meaningful margin expansion (+751 bps from 2022-2025) and FCF generation in 2024 and 2025, which is not reflected in current valuation,” Percoco said. The analyst calculates shares trading at a 37% discount relative to its hydrogen peers, based upon 2025 enterprise value-to-sales numbers. Percoco also forecasts the clean hydrogen tax credit from the Inflation Reduction Act as another upcoming catalyst for consensus revenue expectations from 2025 to 2030. The firm estimates shares could jump more than 75% in the bull case, if Bloom Energy is able to tap “explosive growth” amid consistent cost-cutting and a rise in electric bills. Shares added 1.5% Wednesday premarket. The stock is down 21% in 2023. —CNBC’s Michael Bloom contributed to this report.