Fluence Energy (FLNC – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Ameet Thakkar from BMO Capital maintained a Hold rating on the stock and has a $5.00 price target.
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Ameet Thakkar has given his Hold rating due to a combination of factors surrounding Fluence Energy’s current market position and operational challenges. The company’s management is optimistic about complying with the latest FEOC provisions, which would allow their customers to benefit from significant tax credits. However, there is still considerable work to be done, especially in collaboration with their battery cell supplier, to meet the necessary thresholds for these credits.
Despite some improvements in activity following a period of uncertainty due to tariff issues, there remains a level of unpredictability regarding international projects and margins. While international projects may offer better gross margins due to a higher proportion of EPC work, the competitive pricing environment poses a challenge. Additionally, although the energy storage sector is generally poised for growth, Fluence Energy has not fully capitalized on these trends, leading to concerns about its execution capabilities in a rapidly evolving market.
According to TipRanks, Thakkar is an analyst with an average return of -1.4% and a 44.94% success rate. Thakkar covers the Technology sector, focusing on stocks such as Sunrun, Enphase Energy, and First Solar.