Buy Rating Reaffirmed for Fluence Energy on Leadership in Battery Storage Market and Strong Financial Performance

In a report released yesterday, George Gianarikas from Canaccord Genuity maintained a Buy rating on Fluence Energy (FLNC – Research Report), with a price target of $37.00.

George Gianarikas has given his Buy rating due to a combination of factors highlighting Fluence Energy’s leadership in the rapidly growing battery storage market and its resilient financial performance. Gianarikas points out the significant milestone where battery storage became the dominant power source in California for a period, emphasizing the increasing role of such technologies. He acknowledges Fluence’s solid quarterly results, with a track record of order intake consistently outpacing revenue, and a growing project pipeline, despite concerns over the back-end loaded guidance which relies heavily on fourth-quarter performance. Gianarikas expresses confidence in the management’s ability to meet project milestones, which underpins his positive outlook on the stock.

Moreover, Gianarikas’s analysis underscores Fluence’s potential as a long-term investment due to its leading position in a market that is critical to the future energy system, likening it to influential tech companies that led the development of the server/storage network. He notes Fluence’s capex-light business model, projected to generate high free cash flow and turn to positive adjusted EBITDA in fiscal 2024. His valuation accounts for Fluence’s premium over its peers, justified by its projected revenue growth and robust financial results, including better-than-expected quarterly revenue and a narrowed adjusted EBITDA loss. Consequently, he reiterates the Buy rating with a $37 price target based on these strengths and financial outlook.

Based on the recent corporate insider activity of 15 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.

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Fluence Energy (FLNC) Company Description:

Fluence Energy Inc is enabling the global clean energy transition with market- leading energy storage products and services, and digital applications for renewables and storage.