Analyst Andrew Percoco from Morgan Stanley maintained a Hold rating on Fluence Energy (FLNC – Research Report) and keeping the price target at $4.00.
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Andrew Percoco has given his Hold rating due to a combination of factors impacting Fluence Energy. Despite the company’s strong second-quarter results, where revenue surpassed expectations by approximately 30% and adjusted EBITDA exceeded consensus estimates, there are underlying concerns. The company has reduced its revenue guidance for 2025 significantly, citing a 20% decrease at the midpoint due to a slowdown in project activity and new contracts in the U.S.
Additionally, Fluence Energy faces increased tariff impacts, with an additional $20 million expected, bringing the total to $30 million for the year. The company’s order intake also showed a significant decline, with a 74% drop quarter-over-quarter, resulting in a low book-to-bill ratio. These factors contribute to a cautious outlook, justifying the Hold rating as the company navigates these challenges.
In another report released on April 28, HSBC also downgraded the stock to a Hold with a $4.00 price target.
Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FLNC in relation to earlier this year.