Fluence Energy stock price target lowered to $7 at RBC Capital

Investing.com - RBC Capital lowered its price target on Fluence Energy Inc. (NASDAQ:FLNC) to $7.00 from $8.00 on Wednesday, while maintaining a Sector Perform rating on the energy storage company. The stock currently trades at $7.31, having declined nearly 13% in the past week.

The price target reduction reflects RBC’s concerns about muted order flow and backlog growth, which are affecting fiscal year 2026 expectations for the company. Despite revenue growth of 14% over the last twelve months, InvestingPro data shows the company is quickly burning through cash with weak gross profit margins of 12.7%.

RBC Capital noted that while Fluence Energy maintains strong competitive positioning with domestic content and a next-generation battery platform, the company’s growing pipeline has not translated into increasing orders. According to InvestingPro, the company holds more cash than debt on its balance sheet, providing some financial flexibility despite operational challenges.

The investment firm attributed these challenges to several factors, including macro tariff headwinds, OB3 policy uncertainty, and execution challenges within the company.

RBC’s revised price target is based on 9x 2027E EV/EBITDA, which implies 14x 2026E EV/EBITDA, as the firm awaits additional proof that Fluence’s demand opportunity will translate to backlog growth.

In other recent news, Fluence Energy Inc. reported its Q3 2025 earnings, highlighting a significant revenue shortfall. The company announced earnings per share of $0.01, surpassing the forecasted -$0.01. However, revenue was reported at $63 million, which fell considerably short of the expected $769.45 million. This revenue miss was a notable development for the company. No other major news, such as mergers or analyst upgrades or downgrades, was reported in conjunction with these earnings. These recent developments are crucial for investors to consider.

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