S&P 500 may face selling pressure as systematic funds reach full exposure
On Wednesday, Canaccord Genuity adjusted its price target for Fluence Energy Inc. (NASDAQ:FLNC) shares, reducing it significantly to $14.00 from the previous $34.00. The stock, currently trading near its 52-week low at $7.00, has declined about 56% year-to-date. Despite the decrease, the firm maintained its Buy rating on the company’s stock.
The adjustment follows Fluence Energy’s announcement of lowered financial guidance for fiscal year 2025. Canaccord Genuity’s analysis led to the new target price based on approximately 17 times the forecasted non-GAAP earnings per share (EPS) for fiscal year 2026 ending in September, a decrease from the initially projected 25 times. The revised EPS estimate is now $0.85, down from $1.36. According to InvestingPro data, analysts maintain a moderate buy consensus, with price targets ranging from $6 to $47.
According to the Canaccord analyst, the revised valuation multiple aligns with the current trading multiples of Fluence’s comparable group, which is around 17 times the estimated 2026 EPS. The decision to match the multiple with the peer group is attributed to the uncertainties surrounding the company’s performance, particularly after the December earnings results were disclosed. InvestingPro subscribers can access 18 additional key insights about FLNC, including detailed valuation metrics and growth forecasts.
The analyst emphasized that while Fluence is expected to outpace its comparable group in terms of growth, with revenue projected to grow 22% this year, the recent uncertainty justifies a valuation that is in line with its peers. This cautionary stance comes after considering the company’s financial outlook and recent earnings performance.
In other recent news, Fluence Energy has been the subject of multiple analyst adjustments. Jefferies reduced the company’s stock target from $15 to $7, citing a miss in first-quarter financials and a reduced growth outlook. Similarly, Goldman Sachs cut Fluence Energy’s price target to $13 from $26, despite maintaining a Buy rating. The firm pointed to unique company-specific issues and projected improvements in margins and geographic mix by the end of fiscal year 2025.
Meanwhile, UBS downgraded Fluence Energy’s stock from Buy to Neutral and cut the price target to $8 due to concerns about potential further profit reductions in fiscal year 2025. RBC Capital Markets also downgraded the stock to Sector Perform and reduced the price target to $7, expressing concerns about the company’s growth and margin prospects. Wolfe Research adjusted its stance on Fluence Energy as well, downgrading the stock from Outperform to Peerperform following the company’s revised revenue guidance for FY25.
These are recent developments that reflect analysts’ reactions to Fluence Energy’s first-quarter performance and future expectations. All these adjustments come in the wake of the company’s lowered revenue and earnings projections, signaling a challenging period ahead for Fluence Energy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.