I'll stick with $FLNC (-4,94%) and buy in small doses. What do the analysts know.😉😎
I am currently up 30%.
Investing.com - UBS has confirmed its "Neutral" rating and the price target of 22.00 US dollars for Fluence Energy Inc. (NASDAQ:FLNC) while the bank assesses the potential competitive risks posed by the entry of car manufacturers into the energy storage market. The share is currently trading at USD 25.13, which is above the UBS price target and slightly above the fair value valuation of InvestingProwhich indicates a moderate overvaluation at the current level.
UBS analyst Jon Windham expressed concern about the medium-term uncertainty for Fluence as they await further details on the energy storage strategies of the automotive OEMs. In particular, the analyst noted that Fluence's competitive position could be significantly jeopardized from 2027 onwards should automakers opt to provide fully integrated storage solutions along the lines of Tesla. This caution seems justified given Fluence's high volatility (beta of 2.88) and weak gross profit margin of only 13.1%.
The analysis highlighted that automotive groups such as Stellantis, with a planned battery capacity of 67 GWh per year, and General Motors, with a planned 160 GWh per year, could potentially divert parts of their production to the stationary energy storage market.
Despite the competitive concerns, UBS also sees opportunities for Fluence to partner with automakers to supply domestically produced battery cells should they decide against offering their own fully integrated storage solutions.
The bank also suggested that increased use of battery storage could significantly boost renewable energy adoption in the US and potentially lead to higher long-term demand forecasts for solar energy.
Recent news also put Fluence Energy in the spotlight. The company reported mixed results for the fourth quarter, missing revenue expectations but exceeding EBITDA forecasts. Fluence Energy also reported a record quarterly order intake of around USD 1.4 billion, bringing the order backlog to USD 5.3 billion by the end of the year. In partnership with Varco Energy, Fluence completed Phase 1 of the "Sizing John" battery storage system in the UK; Phase 2 to expand site capacity is already underway.
Analysts reacted to these developments with several adjustments. UBS raised its price target for Fluence Energy from USD 8.00 to USD 22.00, citing the high growth rate and improved gross margin visibility. Susquehanna also raised its target to USD 20.00 and maintained its "Positive" rating, while Morgan Stanley adjusted its target to USD 14.00 and maintained its "Equalweight" rating. Jefferies upgraded Fluence Energy shares from "Underperform" to "Hold" and raised the price target to USD 16.00. The reason given was the company's improving financial outlook despite a revenue shortfall of USD 300 million. These recent developments underscore Fluence Energy's changing position in the energy storage sector.
