Gold prices set for weekly drop as dollar surges; Trump tariff action in focus
On Friday, Morgan Stanley (NYSE:MS) adjusted its outlook on Fluence Energy Inc. (NASDAQ:FLNC), increasing the stock’s price target to $5.00, up from the previous $4.00, while keeping an Equalweight rating on the shares. The revision follows the company’s recent guidance reduction and prevailing uncertainties surrounding its U.S. bookings activity. According to InvestingPro data, analyst targets for FLNC range widely from $2 to $30, reflecting the market’s divided outlook on the stock, which has seen a significant -70.59% decline over the past year despite a recent 17.25% weekly gain.
Despite the lower expectations for 2025, Morgan Stanley’s analyst Andrew Percoco remains cautiously optimistic about the future, citing potential improvements in the tariff environment which could benefit Fluence Energy’s EBITDA margins in 2026. This adjustment reflects a nuanced view of the company’s financial prospects amid evolving market conditions. InvestingPro analysis reveals that while the company currently holds more cash than debt on its balance sheet, it’s quickly burning through cash - a crucial factor for investors to monitor. For deeper insights into Fluence Energy’s financial health and detailed metrics, access the comprehensive Pro Research Report available on InvestingPro.
Fluence Energy, a company specializing in energy storage technology and services, has faced challenges that have led to a reassessment of its near-term financial projections. The guidance reduction mentioned by Morgan Stanley suggests that Fluence Energy is recalibrating its business expectations in light of current market realities. Recent InvestingPro data shows that three analysts have revised their earnings downwards for the upcoming period, though the company is still expected to achieve profitability this year despite its current gross profit margin of 13.07%.
The analyst’s commentary underscores the impact of the tariff environment on Fluence Energy’s operations. Tariffs can significantly influence the cost structure of companies involved in manufacturing and international trade, which in turn affects their profitability and competitive positioning.
The updated price target and maintained rating indicate that Morgan Stanley acknowledges the hurdles Fluence Energy is navigating while also recognizing the company’s potential to improve its financial performance in the longer term. The firm’s analysis presents a balanced view of Fluence Energy’s current situation and future opportunities.
In other recent news, Fluence Energy Inc. reported a second-quarter revenue of $432 million, surpassing expectations of $343.51 million. Despite this positive revenue outcome, the company experienced a wider-than-anticipated loss per share of $0.24, compared to the forecasted loss of $0.1919. Following these earnings results, the company revised its full-year revenue guidance to $2.7 billion due to early-stage project delays and trade uncertainties in the U.S. In analyst updates, Jefferies downgraded Fluence Energy to ’Underperform’ from ’Hold,’ citing a valuation disconnect and a slowing industry outlook, with a reduced price target of $3.00. Meanwhile, UBS raised its price target for the company to $6.00, maintaining a Neutral rating, suggesting that recent tariff reductions could benefit Fluence Energy. The Trump administration’s decision to reduce tariffs on Chinese imports from 145% to 30% may offer Fluence Energy a chance to renegotiate projects and improve cost-sharing agreements. The company also launched its SmartStack technology, aiming to enhance its competitive position in the energy storage market. These developments highlight the challenges and opportunities Fluence Energy faces in navigating regulatory and market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.