Jefferies Upgrades Fluence to Buy with $24 Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy FLNC?
Source: seekingalpha
- Rating Upgrade: Jefferies upgraded Fluence Energy from Hold to Buy with a $24 price target, citing strong prospective EBITDA growth through FY 2028 that justifies the premium valuation despite current market conditions.
- Market Reaction: Following a more than 30% selloff due to softer-than-expected data center pipeline data, the analyst views this reaction as disproportionate, noting that FQ1 results, while not exceptional, included positive developments like full revenue coverage in the backlog for the first time.
- Demand Surge: With macro headwinds easing and surging demand from grid reliability and data centers, Fluence's U.S.-first strategy positions it as one of the few players capable of delivering compliant solutions at scale, suggesting a partial recovery in share price over the next 6-9 months.
- Growth Catalyst: Data centers represent a powerful growth catalyst for Fluence's Smartstack systems, although the full potential of this opportunity may take time to materialize, the analyst believes it will lead to significant long-term benefits for the company.
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Analyst Views on FLNC
Wall Street analysts forecast FLNC stock price to fall
18 Analyst Rating
3 Buy
12 Hold
3 Sell
Hold
Current: 17.440
Low
8.00
Averages
16.25
High
26.00
Current: 17.440
Low
8.00
Averages
16.25
High
26.00
About FLNC
Fluence Energy, Inc. is a global provider of energy storage products and services, and optimization software for renewables and storage. With a presence in 47 markets globally, the Company provides an ecosystem of offerings to drive the clean energy transition, including modular, scalable energy storage products, comprehensive service offerings, and artificial intelligence (AI)-enabled optimization software for managing and optimizing renewables and storage from any provider. Its offerings include energy storage products and solutions, delivery services, recurring O&M services, and digital applications and solutions for energy storage and other power assets. Its energy storage solutions include Gridstack Pro, Gridstack, Sunstack, Edgestack, and Ultrastack. In addition, each of its energy storage solutions comes with its proprietary energy management system, Fluence OS. The Company’s cloud-based software products include Fluence Mosaic and Fluence Nispera.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Data Centers Drive Growth for Fluence and Credo
- Fluence Growth Potential: Fluence Energy's battery modules provide stable power for data centers, with projected sales growth of 57% over the next two years despite flat revenues, indicating strong market demand and potential order opportunities.
- Data Center Project Development: Fluence is currently developing 36 GWh of data center projects, and while these potential sales are not yet included in the official order backlog, they highlight the company's significant position in the rapidly growing AI data center market.
- Credo Technological Innovation: Credo Technology's high-performance networking tools achieve data flows of up to 0.8 Tbps through its Active Electrical Cables, significantly reducing power consumption and cooling requirements, catering to the urgent demand for efficiency in data centers.
- Significant Revenue Growth: Credo's preliminary report for Q3 2026 shows revenues nearing $406 million, tripling from $135 million in the same period last year, demonstrating strong performance in the data center market and reliance on large clients' investments.
See More
Fluence and Credo Technologies Empower Data Centers
- Battery System Advantage: Fluence Energy's industrial-scale battery modules provide clean, stable power for AI data centers, particularly well-suited for integration with renewable energy sources, with projected sales growth of 57% over the next two years, indicating strong market demand.
- Data Center Project Development: Fluence is currently developing 36 GWh of data center projects, and while these potential sales are not yet included in the official order backlog, the expected increase in order volume reflects the company's strategic positioning in a rapidly growing market.
- Efficient Networking Solutions: Credo Technology's high-speed copper cables can transmit data at 0.8 Tbps while consuming significantly less power than fiber-optic networks, addressing the urgent need for high performance and lower costs in data centers, further solidifying its market position.
- Revenue Growth Potential: Credo's preliminary report for Q3 2026 shows revenues nearing $406 million, tripling from $135 million in the same period last year, highlighting its importance in data center infrastructure investments and future growth potential.
See More
Jefferies Upgrades Fluence to Buy with $24 Target
- Rating Upgrade: Jefferies upgraded Fluence Energy from Hold to Buy with a $24 price target, citing strong prospective EBITDA growth through FY 2028 that justifies the premium valuation despite current market conditions.
- Market Reaction: Following a more than 30% selloff due to softer-than-expected data center pipeline data, the analyst views this reaction as disproportionate, noting that FQ1 results, while not exceptional, included positive developments like full revenue coverage in the backlog for the first time.
- Demand Surge: With macro headwinds easing and surging demand from grid reliability and data centers, Fluence's U.S.-first strategy positions it as one of the few players capable of delivering compliant solutions at scale, suggesting a partial recovery in share price over the next 6-9 months.
- Growth Catalyst: Data centers represent a powerful growth catalyst for Fluence's Smartstack systems, although the full potential of this opportunity may take time to materialize, the analyst believes it will lead to significant long-term benefits for the company.
See More
Key Wall Street Rating Changes Overview
- Shopify Upgrade: MoffettNathanson upgraded Shopify from neutral to buy, citing an attractive entry point due to market fears surrounding software companies, and believes Shopify will emerge as a long-term winner in the AI commerce landscape.
- Nvidia Outlook: Bernstein reiterated Nvidia as outperform, emphasizing that the AI growth trend remains robust, particularly in the AI compute sector, suggesting continued benefits for Nvidia and its peers.
- Thomson Reuters Upgrade: RBC upgraded Thomson Reuters from sector perform to outperform, indicating that the company's potential in the AI space will drive a rebound in stock price, creating an asymmetric upside opportunity in a complex market.
- Micron Price Target Increase: Deutsche Bank raised Micron's price target from $300 to $500 per share, asserting that the current market environment remains favorable for Micron's performance in the upcoming quarters, indicating strong growth potential.
See More
US Stocks Plunge as Tech Sector Leads Decline
- Tech Sector Decline: Qualcomm's (QCOM) forecast of weaker-than-expected Q2 revenue led to an over 8% drop in its stock, triggering a sell-off across the tech sector, with the Nasdaq 100 index hitting a 2.5-month low, indicating waning investor confidence in technology stocks.
- Weak Labor Market Signals: Challenger's report revealed a staggering 117.8% year-over-year increase in job cuts for January, totaling 108,435, the highest for January since 2009, while initial jobless claims rose by 22,000 to 231,000, highlighting vulnerabilities in the US labor market that could hinder economic recovery.
- Bitcoin Plunge: Bitcoin (^BTCUSD) plummeted over 12% to a 1.25-year low, reflecting deepening negative momentum in the cryptocurrency market, with approximately $2 billion flowing out of Bitcoin ETFs in the past month, signaling a decline in investor confidence.
- Earnings Season Impact: Despite 150 S&P 500 companies set to report earnings this week, market focus on economic data intensifies, with S&P 500 earnings expected to grow by 8.4% in Q4, yet overall market sentiment remains suppressed by recent economic weakness.
See More
Fluence Energy Reports Record Backlog and Revenue Guidance for Q1 2026
- Record Backlog: Fluence Energy reported a record backlog of $5.5 billion, attributed to enhanced U.S. contracting activity and improved demand forecasts, indicating strong support for the company's future revenue outlook.
- Strong Order Growth: The company secured over $750 million in new orders globally, with more than $500 million from the U.S., demonstrating accelerated market activity since last year's legislative passage, further solidifying its market position.
- Solid Financial Performance: Q1 2026 revenue reached $475 million, representing 14% of full-year guidance and nearly double the revenue earned in Q1 2025, indicating strong progress towards achieving annual targets.
- Optimistic Outlook: The company reaffirmed its fiscal 2026 revenue guidance of $3.2 billion to $3.6 billion, with annual recurring revenue expected to reach approximately $180 million by year-end, reflecting confidence in future growth and effective supply chain risk management.
See More
Data Centers Drive Growth for Fluence and Credo
- Fluence Growth Potential: Fluence Energy's battery modules provide stable power for data centers, with projected sales growth of 57% over the next two years despite flat revenues, indicating strong market demand and potential order opportunities.
- Data Center Project Development: Fluence is currently developing 36 GWh of data center projects, and while these potential sales are not yet included in the official order backlog, they highlight the company's significant position in the rapidly growing AI data center market.
- Credo Technological Innovation: Credo Technology's high-performance networking tools achieve data flows of up to 0.8 Tbps through its Active Electrical Cables, significantly reducing power consumption and cooling requirements, catering to the urgent demand for efficiency in data centers.
- Significant Revenue Growth: Credo's preliminary report for Q3 2026 shows revenues nearing $406 million, tripling from $135 million in the same period last year, demonstrating strong performance in the data center market and reliance on large clients' investments.
See More
Fluence and Credo Technologies Empower Data Centers
- Battery System Advantage: Fluence Energy's industrial-scale battery modules provide clean, stable power for AI data centers, particularly well-suited for integration with renewable energy sources, with projected sales growth of 57% over the next two years, indicating strong market demand.
- Data Center Project Development: Fluence is currently developing 36 GWh of data center projects, and while these potential sales are not yet included in the official order backlog, the expected increase in order volume reflects the company's strategic positioning in a rapidly growing market.
- Efficient Networking Solutions: Credo Technology's high-speed copper cables can transmit data at 0.8 Tbps while consuming significantly less power than fiber-optic networks, addressing the urgent need for high performance and lower costs in data centers, further solidifying its market position.
- Revenue Growth Potential: Credo's preliminary report for Q3 2026 shows revenues nearing $406 million, tripling from $135 million in the same period last year, highlighting its importance in data center infrastructure investments and future growth potential.
See More
Jefferies Upgrades Fluence to Buy with $24 Target
- Rating Upgrade: Jefferies upgraded Fluence Energy from Hold to Buy with a $24 price target, citing strong prospective EBITDA growth through FY 2028 that justifies the premium valuation despite current market conditions.
- Market Reaction: Following a more than 30% selloff due to softer-than-expected data center pipeline data, the analyst views this reaction as disproportionate, noting that FQ1 results, while not exceptional, included positive developments like full revenue coverage in the backlog for the first time.
- Demand Surge: With macro headwinds easing and surging demand from grid reliability and data centers, Fluence's U.S.-first strategy positions it as one of the few players capable of delivering compliant solutions at scale, suggesting a partial recovery in share price over the next 6-9 months.
- Growth Catalyst: Data centers represent a powerful growth catalyst for Fluence's Smartstack systems, although the full potential of this opportunity may take time to materialize, the analyst believes it will lead to significant long-term benefits for the company.
See More
Key Wall Street Rating Changes Overview
- Shopify Upgrade: MoffettNathanson upgraded Shopify from neutral to buy, citing an attractive entry point due to market fears surrounding software companies, and believes Shopify will emerge as a long-term winner in the AI commerce landscape.
- Nvidia Outlook: Bernstein reiterated Nvidia as outperform, emphasizing that the AI growth trend remains robust, particularly in the AI compute sector, suggesting continued benefits for Nvidia and its peers.
- Thomson Reuters Upgrade: RBC upgraded Thomson Reuters from sector perform to outperform, indicating that the company's potential in the AI space will drive a rebound in stock price, creating an asymmetric upside opportunity in a complex market.
- Micron Price Target Increase: Deutsche Bank raised Micron's price target from $300 to $500 per share, asserting that the current market environment remains favorable for Micron's performance in the upcoming quarters, indicating strong growth potential.
See More
US Stocks Plunge as Tech Sector Leads Decline
- Tech Sector Decline: Qualcomm's (QCOM) forecast of weaker-than-expected Q2 revenue led to an over 8% drop in its stock, triggering a sell-off across the tech sector, with the Nasdaq 100 index hitting a 2.5-month low, indicating waning investor confidence in technology stocks.
- Weak Labor Market Signals: Challenger's report revealed a staggering 117.8% year-over-year increase in job cuts for January, totaling 108,435, the highest for January since 2009, while initial jobless claims rose by 22,000 to 231,000, highlighting vulnerabilities in the US labor market that could hinder economic recovery.
- Bitcoin Plunge: Bitcoin (^BTCUSD) plummeted over 12% to a 1.25-year low, reflecting deepening negative momentum in the cryptocurrency market, with approximately $2 billion flowing out of Bitcoin ETFs in the past month, signaling a decline in investor confidence.
- Earnings Season Impact: Despite 150 S&P 500 companies set to report earnings this week, market focus on economic data intensifies, with S&P 500 earnings expected to grow by 8.4% in Q4, yet overall market sentiment remains suppressed by recent economic weakness.
See More
Fluence Energy Reports Record Backlog and Revenue Guidance for Q1 2026
- Record Backlog: Fluence Energy reported a record backlog of $5.5 billion, attributed to enhanced U.S. contracting activity and improved demand forecasts, indicating strong support for the company's future revenue outlook.
- Strong Order Growth: The company secured over $750 million in new orders globally, with more than $500 million from the U.S., demonstrating accelerated market activity since last year's legislative passage, further solidifying its market position.
- Solid Financial Performance: Q1 2026 revenue reached $475 million, representing 14% of full-year guidance and nearly double the revenue earned in Q1 2025, indicating strong progress towards achieving annual targets.
- Optimistic Outlook: The company reaffirmed its fiscal 2026 revenue guidance of $3.2 billion to $3.6 billion, with annual recurring revenue expected to reach approximately $180 million by year-end, reflecting confidence in future growth and effective supply chain risk management.
See More
