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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.
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