S&P 500 may face selling pressure as systematic funds reach full exposure
On Wednesday, Truist Securities reaffirmed its Buy rating on Fluence Energy Inc. (NASDAQ:FLNC), maintaining a price target of $7.00. The endorsement comes despite a significant drop in Fluence Energy’s stock the previous day, with shares currently trading at $6.97. According to InvestingPro analysis, the stock appears undervalued at current levels, with analysts maintaining positive growth expectations for the company. In a recent development, Cordelio Power, a private entity active in the Battery Energy Storage System (BESS) market, has inked an agreement with Fluence for more than 1.0GWh of BESS equipment. This equipment is intended for Cordelio’s own development pipeline, with projects expected to begin in 2026 and 2027. The deal adds to Fluence’s impressive revenue base of $2.52 billion, which has shown strong growth of 11% over the last twelve months.
Cordelio Power, which has ongoing BESS projects in Washington, Illinois, and Kentucky, has also recently finalized offtake agreements for two additional BESS facilities in Arizona through a joint venture with BrightNight. Analysts believe that this latest agreement with Fluence was likely factored into the company’s updated guidance. For deeper insights into Fluence’s financial health and growth prospects, including 15+ additional ProTips and comprehensive valuation metrics, visit InvestingPro. The ability of Fluence to secure large volume procurement agreements with a diverse customer base is viewed as a critical step towards the company’s share recovery.
The press release highlighted by Truist Securities detailed the arrangements between Cordelio and Fluence, which cover two rounds of procurement totaling 1GWh of BESS equipment. These procurements are set to bolster the commissioning of new BESS projects from Cordelio’s development pipeline, scheduled for construction in 2026 and 2027. With a market capitalization of $1.27 billion, Fluence is well-positioned to execute these large-scale projects.
Additionally, the partnership between BrightNight and Fluence was noted, with BrightNight collaborating with Fluence and other suppliers to develop battery storage projects. It was also mentioned that Jeff Gibbons, Senior VP of Asset Management at BrightNight, was a founding member of Fluence and held a senior operational role at AES (NYSE:AES). Moreover, the Chief Technology Officer of BrightNight has previously worked at Fluence, indicating a strong professional connection between the companies.
In other recent news, Fluence Energy Inc. has seen a significant adjustment in analyst price targets and ratings. Canaccord Genuity has reduced its price target for Fluence to $14, down from $34, while maintaining a Buy rating, following the company’s announcement of lowered financial guidance for fiscal year 2025. Jefferies also revised Fluence’s price target to $7, down from $15, after the company reported a miss in its first-quarter financials and a reduced growth outlook.
Goldman Sachs followed suit, adjusting the price target to $13, a decrease from the previous $26, while still upholding a Buy rating, despite a disappointing first quarter and a steep reduction in the company’s full-year 2025 guidance metrics. In contrast, UBS analysts downgraded Fluence’s stock from Buy to Neutral and significantly reduced the price target to $8, amid concerns about potential further profit reductions in fiscal year 2025.
Lastly, RBC Capital Markets revised its stance on Fluence, downgrading the stock from Outperform to Sector Perform and significantly reducing the price target to $7. These revisions reflect the recent developments and uncertainties surrounding Fluence’s performance and financial outlook.
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