Fluence Energy (FLNC – Research Report), the Utilities sector company, was revisited by a Wall Street analyst today. Analyst Ameet Thakkar from BMO Capital downgraded the rating on the stock to a Hold and gave it a $10.00 price target.
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Ameet Thakkar’s rating is based on the observation that Fluence Energy’s recent performance has raised concerns about its competitive position. The company’s latest financial update for the first quarter of 2025 revealed significant downward revisions in revenue and EBITDA forecasts, suggesting a loss in market share and a shift in focus towards international markets more than initially expected. The revised guidance for fiscal year 2025 shows a substantial cut in revenue and EBITDA projections, which implies a deterioration in the company’s competitive standing, particularly in the U.S. market.
Furthermore, while the energy storage sector as a whole is expected to experience robust growth, it appears Fluence Energy is not fully capitalizing on these positive trends. The company’s ability to secure necessary bookings in the remaining quarters of 2025 is uncertain, given the recent decline in new orders. These factors contribute to a cautious outlook, leading to the Hold rating, as the potential for improved performance is hindered by existing challenges.
Thakkar covers the Technology sector, focusing on stocks such as Enphase Energy, SolarEdge Technologies, and NEXTracker, Inc. Class A. According to TipRanks, Thakkar has an average return of -5.4% and a 40.85% success rate on recommended stocks.
In another report released on January 29, Morgan Stanley also maintained a Hold rating on the stock with a $20.00 price target.