Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Friday, Jefferies analyst Julian Dumoulin-Smith revised the price target for Fluence Energy Inc. (NASDAQ: NASDAQ:FLNC) to $4.00, a decrease from the previous target of $7.00, while maintaining a Hold rating on the stock. The adjustment follows a significant sell-off in Fluence Energy shares, which dropped over 11% due to the introduction of new tariffs by China. These tariffs are expected to have a considerable impact on the company’s gross margins, currently at 12.93%, potentially reducing them by approximately $50-60 million in fiscal year 2025. According to InvestingPro data, the stock is currently trading near its 52-week low of $4.06, with multiple indicators suggesting an oversold condition.
Dumoulin-Smith expressed skepticism about the effectiveness of Fluence Energy’s domestic strategy until the company’s U.S. operations are fully scaled up. With the second quarter earnings scheduled for May 7, 2025, the analyst anticipates a lackluster performance and suggests that there could be another downward revision of the company’s full-year guidance. InvestingPro analysis reveals that 5 analysts have already revised their earnings expectations downward for the upcoming period, though the company is still expected to achieve 23% revenue growth this fiscal year.
In response to these developments, Jefferies has lowered its revenue estimates for Fluence Energy by 7-15% through the year 2029. Furthermore, adjustments to the company’s margins have been made, with a reduction of less than 10% anticipated for the years 2025 and 2026. Dumoulin-Smith described the situation as a "challenging set up," prompting the decision to lower the price target for Fluence Energy shares.
The revised price target and the maintained Hold rating reflect the analyst’s view of the challenges facing Fluence Energy, particularly as it navigates the new tariffs and strives to optimize its U.S. operations. The financial impacts of these tariffs and the potential adjustments to the company’s guidance will be closely watched by investors as the company approaches its second-quarter earnings release.
In other recent news, Fluence Energy Inc. has been the subject of several analyst evaluations and company developments. BMO Capital Markets maintained a Market Perform rating with a price target of $10, citing concerns over increased tariffs on imported Chinese battery components, which are crucial to Fluence Energy’s storage systems. Mizuho (NYSE:MFG) initiated coverage with an Outperform rating and an $8 price target, highlighting Fluence’s strong market position and potential benefits from domestic sourcing and growing demand for grid reliability. In contrast, BofA Securities downgraded the stock from Buy to Neutral, reducing the price target to $8, due to operational execution risks and heightened competition, particularly from Tesla (NASDAQ:TSLA) and Chinese firms.
Additionally, Fluence Energy announced the promotion of Peter Williams to Senior Vice President and Chief Product and Supply Chain Officer, a move expected to enhance product development and supply chain integration. This organizational change is part of Fluence’s ongoing efforts to strengthen its market presence and improve operational efficiency. Meanwhile, the competitive landscape remains challenging, with Canadian Solar (NASDAQ:CSIQ)’s recent price target cut by Citi reflecting broader market pressures that could also impact Fluence Energy. As the energy storage sector evolves, Fluence Energy’s strategic decisions and market performance will continue to be closely monitored by investors and analysts alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.