Gold prices edge higher with focus on Ukraine-Russia, Jackson Hole
On Wednesday, Wolfe Research adjusted its stance on Fluence Energy Inc. (NASDAQ: NASDAQ:FLNC), downgrading the stock from Outperform to Peerperform. The downgrade comes amid a significant stock decline, with InvestingPro data showing the stock has fallen over 41% in the past week, currently trading at $7, well below its 52-week high of $26.12. The decision followed the company’s revised revenue guidance for FY25, which now estimates revenues to be between $3.1 billion and $3.7 billion, a significant reduction from the previous forecast of $3.6 billion to $4.4 billion. Wolfe Research’s own projection had been $4 billion, closely aligned with the consensus estimate of $3.9 billion. According to InvestingPro data, despite these challenges, analysts still expect 22% revenue growth for the fiscal year.
The revision in guidance is attributed to the delay of three significant contracts in Australia. Although these contracts are anticipated to be finalized within the year and are expected to contribute to revenue in 2026, the immediate impact on the forecast has been notable. Wolfe Research expressed concern over the lowered revenue expectations, which they found disappointing.
Adding to the firm’s reservations were the competitive pressures highlighted by Fluence Energy. The company now expects gross margins in 2025 to be in the range of 10-12%, a narrowing from the previously forecasted span of 10-15%. This aligns with current performance, as InvestingPro data shows trailing twelve-month gross margins at 12.93%. Wolfe Research pointed to the influence of Chinese competitors as a key factor in driving down international pricing, which has led to tighter margin expectations.
Despite these challenges, Wolfe Research maintains a constructive view on Fluence Energy’s domestic content product. However, they adopt a more cautious outlook regarding the potential for margin expansion, given the increasingly competitive landscape. The firm’s revised rating reflects a tempered expectation for Fluence Energy’s financial performance in the near term. InvestingPro analysis suggests the stock is currently undervalued, with additional ProTips indicating oversold conditions and strong sales growth potential. Subscribers can access 16 more exclusive ProTips and a comprehensive Pro Research Report for deeper insights into FLNC’s valuation and prospects.
In other recent news, Fluence Energy has seen a series of adjustments in its stock ratings and price targets from several analyst firms. Roth/MKM downgraded the company’s stock rating from Buy to Neutral, citing weak first fiscal quarter results and a substantial reduction in the company’s forecast for FY’25 EBITDA. Concurrently, the firm slashed the price target from $20.00 to $6.50. Truist Securities maintained a Buy rating on Fluence Energy’s stock while reducing the price target to $13.00, expressing confidence in the company’s long-term potential despite recent challenges.
Citi maintained a Neutral rating, however, it cut the price target from $24.00 to $10.00 due to weaker-than-anticipated financial results for the first quarter of fiscal year 2025. Barclays (LON:BARC) reiterated its Overweight rating on Fluence Energy with a steady price target of $22.00, acknowledging potential stock weakness following a disappointing quarter. Lastly, BMO Capital Markets downgraded the company’s stock rating from Outperform to Market Perform and significantly reduced the price target from $22.00 to $10.00 due to concerns about the company’s competitive position and market dynamics. These recent developments play a significant role in shaping investor perspectives on Fluence Energy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.