Bloom Energy Corp BE reported its fourth-quarter results Thursday ahead of expectations.

There is upside potential for the company's revenues from rising power demand, according to JPMorgan.

The Bloom Energy Analyst: Mark Strouse maintained a Neutral rating for Bloom Energy, while raising the price target from $16 to $18.

The Bloom Energy Thesis: The company reported its revenue and pro forma EBITDA at $572 million and $147 million, respectively, beating Street expectations of $538 million and $105 million, Strouse said in the note.

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Bloom Energy delivered a gross margin beat "driven by favorable operating leverage from larger than expected revenues during the quarter," he added.

While headline product backlog was flat year-on-year, "management noted that backlog is becoming less relevant as the majority of FY24 revenue was booked and shipped intra-year," the analyst wrote.

The company's full-year guidance of revenue, pro forma operating income and gross margins of $1.65 billion to $1.85 billion, $135 million to 165 million and around 29% came above expectations.

Bloom Energy's EBITDA margin profile "is below average for product companies within our coverage," he further stated.

BE Price Action: Shares of Bloom Energy had risen by 0.56% to $23.17 at the time of publication on Friday.

Read More:  Bloom Energy Strengthens 10-Year Equinix Partnership, Deploying Next-Gen Fuel Cells For Data Center Power

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