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Investing.com - Mizuho has reduced its price target on Fluence Energy Inc. (NASDAQ:FLNC) to $9.00 from $10.00 while maintaining a Neutral rating on Thursday. The stock, currently trading at $7.55, has fallen nearly 17% in the past week, according to InvestingPro data.
The energy storage company beat profit expectations but missed revenue targets as anticipated project acceleration materialized slower than expected due to production ramp challenges. With annual revenue of $2.45 billion and a market capitalization of $989 million, InvestingPro analysis shows the company is currently struggling with weak gross profit margins of 12.7%.
Despite the quarterly profitability beat, Fluence maintained its fiscal year margin outlook without improvement, tempering expectations for a return to its historical 10-15% gross margin range.
Mizuho cited production ramp delays extending into 2026 as the primary reason for the 10% reduction in its discounted cash flow-based price target.
The research firm’s analysis indicates U.S. production capacity won’t reach optimal levels until the end of next year, affecting near-term financial performance.
In other recent news, Fluence Energy reported its Q3 2025 earnings, which included a revenue shortfall that caught investor attention. The company posted earnings per share of $0.01, surpassing the projected loss of -$0.01. However, revenue was significantly lower than expected, totaling $63 million against an anticipated $769.45 million. This discrepancy in revenue contributed to increased scrutiny from analysts and investors. In response, RBC Capital adjusted its price target for Fluence Energy, lowering it from $8.00 to $7.00 while maintaining a Sector Perform rating. RBC’s decision reflects concerns about the company’s muted order flow and backlog growth, which may impact fiscal year 2026 expectations. These developments highlight the challenges Fluence Energy faces in meeting market forecasts and maintaining investor confidence.
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