Fluence Teams up With AWS; Street Sees Massive Upside

Energy storage products, services, and digital applications provider Fluence Energy, Inc. (FLNC) has teamed up with Amazon Web Services (AWS) on cloud computing services in order to support its hardware and software platforms.

The move further expands collaboration between the two companies, which also includes providing Amazon with renewable energy. The AES Corp. has entered into two renewable energy power purchase agreements with Amazon. AES will source the energy from its portfolio of projects where Fluence is supplying energy storage solutions for one of the projects.

Management Weighs In

Howard Gefen, General Manager, Energy & Utilities, AWS, commented, “This agreement will help toward our Climate Pledge commitment to reach net-zero carbon by 2040 and power our operations with 100% renewable energy by 2025, five years ahead of our original target of 2030.”

Chief Digital Officer of Fluence, Seyed Madaeni, added, “Fluence is pleased to work with AWS, supporting our mission – transforming the way we power our world – with AWS data centers increasingly powered by clean energy.”

Under the agreement, Fluence will harness AWS cloud computing services to develop its digital applications targeted at optimizing renewable energy and energy storage. Additionally, Fluence will provide energy storage solutions to AES for some projects powering Amazon operations. In turn, AES will deploy Fluence’s IQ Bidding Application to optimize its energy storage projects.

Bloggers Remain Positive

TipRanks data indicates blogger opinions and sentiment about Fluence remain Bullish, with 100% Bullish opinions, compared to the sector average of 70%.

Analyst’s Take

RBC Capital analyst Shelby Tucker has reiterated a Buy rating on the stock alongside a price target of $28.

Overall, the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on six Buys and two Holds. At the time of writing, the average Fluence price target was $25, which implies a potential upside of 148%. 

Closing Note

With this move, Fluence is expected to benefit from AWS’ expertise in machine learning and high-performance computing to support platforms such as Fluence IQ Digital Platform and Fluence operating system.

Additionally, this agreement also demonstrates how customers can optimize their storage and renewable assets with the help of Fluence’s offerings. The massive 148% upside expected by the Street only makes the stock even more attractive.

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