Fluence Energy faces wave of downgrades on margin, growth concerns

Investing.com
02-12

Investing.com -- Fluence Energy Inc (NASDAQ:FLNC) faced a series of analyst downgrades, as concerns over declining margins, project delays, and competitive pressures weighed on investor sentiment.

RBC Capital Markets downgraded Fluence to "Sector Perform" saying a need for management to prove the company’s growth and margin recovery, which could take several quarters. The firm cut its price target to $7 from $25, pointing to limited visibility on sales of Fluence’s next-generation battery, launched this week.

Wolfe Research also downgraded the stock to “Peer Perform,” on disappointing results and a weak outlook echoed the company's post-IPO struggles. While it expects delayed projects to materialize, the firm said Fluence must rebuild investor confidence amid intensifying competition.

UBS lowered its rating to "Neutral" and slashed its price target to $8, citing concerns over further profit cuts in fiscal 2025 after Fluence halved its adjusted EBITDA guidance just three months after issuing its original outlook. The bank flagged weakening pricing power and sustained margin pressures, despite strong storage demand in the Americas.

Roth MKM followed suit, also downgrading Fluence to "Neutral" on fears of prolonged margin deterioration.

Fluence shares trade near multi-year lows, with analysts noting cautious investor sentiment despite the company’s $5 billion backlog and expectations for positive adjusted EBITDA in 2025.

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