Fluence Energy (FLNC – Research Report), the Utilities sector company, was revisited by a Wall Street analyst today. Analyst Andrew Percoco from Morgan Stanley maintained a Hold rating on the stock and has a $20.00 price target.
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Andrew Percoco has given his Hold rating due to a combination of factors affecting Fluence Energy’s financial outlook. The company recently revised its 2025 revenue guidance downward by 15%, primarily due to delays in signing certain contracts in Australia, which have been postponed to later in the year. Additionally, the projected adjusted EBITDA margin was halved, pointing to increased competitive pressures that have impacted revenue and gross margins on recent contracts.
Moreover, the order bookings have decreased by 35% quarter-over-quarter, which supports concerns about ongoing margin compression due to rising competition. This situation has prompted a cautious approach as further details are expected regarding customer-driven delays and average selling price pressures on new orders, which could exacerbate the existing margin pressures. The management’s strategy to handle these challenges, including tariff exposures and an investigation into Chinese anode materials, remains a critical focus for investors.
In another report released today, BMO Capital also downgraded the stock to a Hold with a $10.00 price target.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FLNC in relation to earlier this year.