In a report released today, Amit Dayal from H.C. Wainwright maintained a Buy rating on Flux Power Holdings (FLUX – Research Report), with a price target of $15.00.
Amit Dayal has given his Buy rating due to a combination of factors including Flux Power Holdings’ strategic initiatives and potential for financial growth. Despite a year-over-year revenue decrease in the third fiscal quarter of 2024, the company has maintained relatively steady gross margins and is actively exploring both cost-cutting measures and opportunities to improve pricing. Management’s commitment to addressing a slowdown in customer spending by enhancing marketing efforts, introducing heavy-duty models in response to customer demand, and initiating a private label program indicates a proactive approach to current market challenges.
Moreover, the recent additions of a new CFO and board member are seen as beneficial moves that could support the company’s growth objectives. Dayal emphasizes the importance of Flux Power’s product development and partnership strategies, which are anticipated to contribute to stronger financial performance in future quarters. The growth prospects are further underscored by the projection of a significant increase in revenues over the next decade, with a compound annual growth rate of 22.5%, according to Dayal’s analysis. This optimistic long-term outlook, coupled with the potential for improved backlog figures, underpin the Buy rating, despite the risks associated with dilution, execution, and market uncertainty.
In another report released on May 10, Craig-Hallum also maintained a Buy rating on the stock with a $7.00 price target.
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Flux Power Holdings (FLUX) Company Description:
Flux Power Holdings, Inc. engages in the design, development, and sale of rechargeable lithium-ion energy storage systems for industrial applications. It focuses on electric fork lifts and airport ground support equipment. The company was founded by Christopher L. Anthony and Michael Johnson on September 21, 1998 and is headquartered in Vista, CA.
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