Shares of Fluence Energy, Inc. (FLNC) plummeted by 5.21% in intraday trading on Thursday, following a downgrade by Bank of America (BofA) analysts citing growing execution risks and intensifying competition for the energy storage company.
In a research note, BofA downgraded Fluence Energy to a "Neutral" rating from "Buy" and slashed its price target to $8 from $20. The analysts cited several key concerns, including Fluence's reduced revenue guidance for fiscal year 2025 and reliance on backloaded growth, increasing the risk of negative revisions and earnings misses.
Additionally, BofA highlighted the mounting competitive pressure on Fluence from rivals like Tesla (TSLA) and lower-cost Chinese battery suppliers. The analysts noted that Fluence is losing market share in the US to Tesla and growing slower than the broader market, while Chinese competitors are pressuring Fluence's gross margins with their cost advantage in battery supply chains.