Gold bars to be exempt from tariffs, White House clarifies
On Thursday, Citi analyst Ryan Levine maintained a Neutral rating on Fluence Energy Inc. (NASDAQ:FLNC) with a consistent price target of $5.00. Levine’s assessment followed the company’s announcement of a revenue beat but an earnings shortfall for the second quarter. According to InvestingPro data, the company has generated $2.52 billion in revenue over the last twelve months, though it remains unprofitable with weak gross margins of about 13%. Notably, Fluence Energy reduced its financial year 2025 guidance for the second time in a row, attributing the decision to the uncertainty around tariffs. The company now anticipates EBITDA to be approximately $10 million for the current year, aligning with Citi’s projections.
Levine had previously pointed out the risk of tariff-related delays and cancellations potentially wiping out EBITDA for FY25. Although the company’s backlog decreased quarter over quarter due to a book-to-bill ratio of less than one and deferrals of upcoming contracts, it appears that existing projects are on hold rather than being canceled outright. InvestingPro analysis reveals the company is quickly burning through cash, with negative free cash flow of $160 million, though it maintains more cash than debt on its balance sheet. Fluence Energy did secure its first contract for the newly introduced Smartstack product but did not provide any new information regarding the three contracts in Australia that had been postponed.
The analyst expects the stock to remain under pressure until the tariff issues are fully addressed. The upcoming anode AD/CVD decision is seen as the next significant event that could potentially influence the company’s stock performance. Levine’s commentary reflects a cautious stance towards Fluence Energy’s near-term outlook amidst the current trade environment. While the stock has fallen 78% over the past six months, InvestingPro analysis suggests it remains slightly undervalued, with 18 additional real-time insights available to subscribers, including detailed financial health scores and comprehensive valuation metrics.
In other recent news, Fluence Energy has faced several analyst downgrades and price target reductions amid tariff concerns and market challenges. HSBC analysts downgraded the company from a Buy to a Hold, significantly lowering the price target to $4.00 due to increased tariffs on Chinese battery cells, which are expected to impact the US energy storage market. Piper Sandler also revised its price target for Fluence Energy to $4.00, maintaining a Neutral rating while highlighting the challenges posed by tariffs and global pricing pressures. Canaccord Genuity adjusted its price target to $10.00, retaining a Buy rating and expressing optimism about Fluence’s long-term growth potential despite current hurdles.
Guggenheim Securities cut its price target to $2.00, maintaining a Sell rating, citing concerns over Fluence Energy’s reliance on government subsidies for future earnings. JPMorgan analysts downgraded the stock from Overweight to Neutral, adjusting the price target to $7.00, driven by anticipated subdued order activity due to tariff uncertainties. These developments reflect broader concerns in the energy storage sector, with analysts noting the potential impact on Fluence Energy’s financial performance and strategic direction. The company is facing a challenging environment as it navigates tariff-related issues and market dynamics.
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