Susquehanna raises Fluence Energy stock price target to $20 on strong backlog

Published 26/11/2025, 16:10
Susquehanna raises Fluence Energy stock price target to $20 on strong backlog

Investing.com - Susquehanna raised its price target on Fluence Energy Inc. (NASDAQ:FLNC) to $20.00 from $17.00 on Wednesday, maintaining a Positive rating following the company’s fourth-quarter fiscal year results. The new target sits above the current stock price of $18.43, though InvestingPro data indicates FLNC is trading above its Fair Value, with analyst targets ranging from $7.50 to $25.00.

Fluence Energy reported mixed fourth-quarter performance, missing revenue expectations but exceeding EBITDA forecasts. The company achieved record quarterly order intake of approximately $1.4 billion, growing its backlog to $5.3 billion by year-end. InvestingPro data shows the company posted revenue of $2.26 billion for the last twelve months, with a weak gross profit margin of just 13.13% and negative EBITDA of $15.77 million.

The energy storage company is experiencing increased demand from data center customers for its SmartStack product and expects 2026 order intake to concentrate on the U.S. market, driven by growing focus on domestic content solutions as Foreign Entity of Concern (FEOC) implementation progresses. According to InvestingPro Tips, the stock generally trades with high price volatility, which investors should note when considering the company’s growth prospects.

Fluence Energy provided fiscal year 2026 revenue guidance of $3.4 billion at the midpoint, representing approximately 50% year-over-year growth, with about 85% of this target already covered by the current backlog. This projected growth comes despite a 16.15% revenue decline in the last twelve months. InvestingPro analysis indicates analysts do not anticipate the company will be profitable this year, with FY2026 EPS forecast at -$0.05.

The company continues developing its domestic supply chain and is working on FEOC compliance solutions for its AESC cell supply, which might include purchasing the facility outright, while also announcing a second domestic cell supply deal expected to be FEOC compliant. The company operates with a moderate level of debt, with a debt-to-equity ratio of 1.01, while maintaining adequate liquidity with a current ratio of 1.51.

In other recent news, Fluence Energy reported its fourth-quarter 2025 earnings, which fell short of market expectations. The company posted an earnings per share (EPS) of $0.13, below the anticipated $0.21, and recorded revenue of $1.04 billion, missing the forecasted $1.39 billion. Despite this shortfall, several analysts have adjusted their outlooks for the company. Jefferies upgraded Fluence Energy from Underperform to Hold, citing an improving outlook and setting a new price target of $16.00, up from $11.00. Morgan Stanley raised its price target to $14.00 from $12.00, maintaining an Equalweight rating. Canaccord Genuity significantly increased its price target to $25.00 from $10.00, reflecting optimism about the company’s role in the global energy storage sector. RBC Capital also raised its price target to $10.00 from $9.00, noting a solid fiscal fourth-quarter performance despite some revenue delays. These developments highlight a mixed but optimistic analyst sentiment towards Fluence Energy.

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