Fluence Energy gets buy rating, $26 price target from Jefferies

Published 03/09/2024, 22:32
Fluence Energy gets buy rating, $26 price target from Jefferies

On Tuesday, Fluence Energy Inc. (NASDAQ:FLNC) received a positive outlook from Jefferies, with the firm initiating coverage on the stock and setting a Buy rating. The firm has set a price target of $26.00 for the company's shares, indicating a significant potential upside.

Fluence Energy, known for its large-scale lithium-ion battery packages and associated software solutions, is recognized as a vital component in the energy sector's transition. The technology provided by Fluence is aimed at optimizing the storage and use of excess energy generated from renewable sources like wind and solar.

Jefferies expects Fluence Energy's growth trajectory to remain strong and to further accelerate into 2025. The firm's revenue estimates suggest an increase of 60% year-over-year, which surpasses the company's own guidance of a 50% increase and is well above the more conservative 42% growth expectation from others in the industry.

The analyst from Jefferies highlighted the company's role as a crucial bridge in the energy transition, which is essential for harnessing and optimizing renewable energy during periods of excess production. This positioning is expected to contribute to the company's robust growth prospects.

With the new price target of $26.00, Jefferies signals confidence in Fluence Energy's market performance and its strategic importance in the evolving energy landscape. Investors will be watching closely to see if the company can meet or exceed the growth expectations set forth by the firm.

In other recent news, Fluence Energy has seen several adjustments in its stock price targets by various analyst firms, despite the company's shift to profitability in its third fiscal quarter. Baird maintained an Outperform rating but reduced the stock's price target to $27, citing a lowered forecast for fiscal 2024.

UBS also maintained a Buy rating for Fluence Energy but cut its stock target from $32 to $28 after revising its EBITDA and EPS forecasts for 2024 to 2026. Scotiabank initiated coverage on Fluence Energy, assigning a Sector Perform rating and a price target of $21, while Truist Securities started coverage with a Buy rating and a price target of $25.

Fluence Energy confirmed its revenue growth expectations of 35%-40% for fiscal 2025, holding to the previously projected midpoint of $3.0 billion. This outlook persists despite the announcement of two project delays extending beyond the next fiscal year.

The company is also set to make significant supplier changes in the latter half of 2024, including starting module assembly in September and shifting to U.S. cell sourcing in December.

In addition to analyst ratings, Fluence Energy has reported revenues of $623 million and new orders exceeding $700 million. The company also recently launched a new Remote Monitoring and Diagnostics Center in Bengaluru, India, aimed at improving operational data intelligence for its global asset fleet.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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