Fluence Energy stock price target raised to $8 at UBS on margin outlook

Published 27/08/2025, 11:54
Fluence Energy stock price target raised to $8 at UBS on margin outlook

Investing.com - UBS has raised its price target on Fluence Energy Inc. (NASDAQ:FLNC) to $8.00 from $6.00 while maintaining a Neutral rating on the stock. The company, currently trading at $7.58, appears slightly undervalued according to InvestingPro’s Fair Value analysis.

The price target increase reflects improved visibility into near-term gross margin improvement for the energy storage company, according to UBS.

UBS cited lower universal tariff rates on imports from China as one factor supporting the improved margin outlook for Fluence Energy .

The firm also noted that recent IRS guidance on construction commencement issued on August 15, 2025, provided a better-than-expected outlook for utility-scale solar, which benefits Fluence’s business.

UBS’s new $8 price target is based on a 12x multiple of expected EV/EBITDA for the period from Q3 2026 through Q2 2027, which aligns with Fluence’s utility-scale renewable peers that trade at an average 11.7x 2025 EV/EBITDA.

In other recent news, Fluence Energy reported its Q3 2025 earnings, revealing a significant revenue shortfall. The company posted earnings per share of $0.01, surpassing the forecast of -$0.01. However, its revenue was $63 million, falling short of the expected $769.45 million. This revenue miss has raised concerns among investors and analysts alike. Mizuho has adjusted its price target for Fluence Energy to $9.00 from $10.00, maintaining a Neutral rating due to production ramp challenges. Similarly, RBC Capital lowered its price target to $7.00 from $8.00, citing concerns about muted order flow and backlog growth affecting fiscal year 2026 expectations. These developments reflect ongoing challenges for the company in meeting revenue expectations and managing production delays.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.