Flux Power Holdings (FLUX – Research Report), the Industrials sector company, was revisited by a Wall Street analyst on March 21. Analyst Amit Dayal from H.C. Wainwright maintained a Buy rating on the stock and has a $8.00 price target.
Amit Dayal has given his Buy rating due to a combination of factors including the refreshed management team at Flux Power Holdings, which is expected to take a more aggressive approach towards sales growth. The company has recently caught up with its filings, resolving previous overhangs, and is entering 2025 with a new CEO and Chief Revenue Officer. This new leadership is anticipated to bolster the company’s sales and business development efforts, although the financial impact of these initiatives might only be visible in the fiscal year 2026.
Operational improvements are evident with enhanced gross margins and an expectation of achieving adjusted EBITDA profitability by the end of the fiscal year. Sales growth is projected to stem from price increases, new product offerings, and proactive sales pipeline development. The new leadership’s experience in software businesses could also contribute to growing telemetry-related recurring revenues. Despite adjusting the price target to $8.00 and revising revenue projections, the company’s improved balance sheet and strategic initiatives support a positive outlook.
In another report released on March 21, Craig-Hallum also maintained a Buy rating on the stock with a $3.00 price target.