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Investing.com - Jefferies has raised its price target on Fluence Energy Inc. (NASDAQ:FLNC) to $6.00 from $3.00 while maintaining an Underperform rating on the energy storage company’s stock. Currently trading at $8.45, the stock has seen a strong return over the last month despite falling over 50% in the past year, according to InvestingPro data.
The price target adjustment comes despite Jefferies’ continued concerns about competition from Chinese suppliers in the battery storage market, even with favorable Inflation Reduction Act (IRA) outcomes for storage companies.
Jefferies notes that U.S. battery suppliers may not be automatic winners in the market despite the IRA benefits, citing competitive pricing pressure from Chinese manufacturers.
The firm expects Fluence management to address its relationship with AESC as it targets Foreign Entity of Concern (FEOC) compliance by year-end, but questions remain about how developers will value the Investment Tax Credit ( ITC (NSE:ITC)) against lower Chinese prices.
Jefferies has lowered its fiscal year 2026 volume projections for Fluence, emphasizing limited visibility on demand conditions in both the near term and long term.
In other recent news, Fluence Energy has been selected by AMPYR Australia for a significant battery energy storage system project, marking a major development in the company’s international operations. The Wellington Stage 1 project in Australia will have a capacity of 600MWh and is part of Fluence’s expanding footprint in the region. On the domestic front, Fluence has commenced production at its new manufacturing facility in Goodyear, Arizona. This facility will produce enclosures and battery management system hardware, contributing to the domestic supply chain and the creation of over 1,200 manufacturing jobs.
In analyst developments, Morgan Stanley (NYSE:MS) raised its price target for Fluence Energy from $4 to $5, maintaining an Equalweight rating, reflecting cautious optimism about the company’s future financial performance. Conversely, Jefferies downgraded Fluence Energy to ’Underperform’ from ’Hold,’ citing concerns over valuation and a slowing industry outlook. This downgrade comes amidst Fluence’s recent downward revision of its FY25 revenue guidance by 20%, highlighting market uncertainties. The company has faced challenges due to changes in tariff policies and the potential impact of proposed tax bill provisions on its operations.
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