Fluence Energy (FLNC – Research Report), the Utilities sector company, was revisited by a Wall Street analyst today. Analyst Dimple Gosai from Bank of America Securities reiterated a Hold rating on the stock and has a $5.00 price target.
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Dimple Gosai has given his Hold rating due to a combination of factors impacting Fluence Energy’s financial outlook. The company has faced a significant reduction in its FY25 revenue guidance by approximately 20%, primarily due to a pause in U.S. contracting linked to high tariffs on Chinese cells. This has resulted in limited visibility on growth and bookings until the tariff levels are finalized, leading to a cautious stance on the stock.
Additionally, while customer engagement remains, the increased costs from tariffs have led to a reluctance among customers to commit to fully domestic projects, preferring potentially cheaper blended options. This uncertainty, coupled with potential complications from FEOC-related restrictions, poses risks to margins and U.S. volumes extending into FY26. Consequently, the financial estimates for FY25 and FY26 have been adjusted downward, reflecting these challenges and supporting the Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $5.00 price target.