Roth MKM analyst Justin Clare downgraded the rating on Fluence Energy (FLNC – Research Report) to a Hold today, setting a price target of $6.50.
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Justin Clare has given his Hold rating due to a combination of factors that have emerged following Fluence Energy’s recent financial performance. The company reported weaker than expected results for the first fiscal quarter, with deployments and revenue significantly below consensus expectations. This underperformance led to a drastic reduction in the company’s guidance for fiscal year 2025, including a substantial 53% cut in their adjusted EBITDA projection.
Additionally, the firm is facing competitive pressures that are compressing gross margins, particularly in international markets which make up more than half of its pipeline. Although there is potential for a rebound in margins with the launch of a new product and a greater focus on domestic and Australian markets, there remains concern over the impact of Chinese competition and an overcapacity of batteries. These factors contribute to a cautious outlook, prompting a downgrade to a more neutral stance until further clarity on these issues is achieved.
According to TipRanks, Clare is an analyst with an average return of -4.9% and a 39.62% success rate. Clare covers the Utilities sector, focusing on stocks such as Fluence Energy, Altus Power, and ReNew Energy Global.
In another report released today, UBS also downgraded the stock to a Hold with a $8.00 price target.