Jefferies Upgrades Fluence to Buy with $24 Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy FLNC?
Source: seekingalpha
Fluence Energy Inc's stock fell by 6.27% as it crossed below its 5-day SMA, reflecting investor concerns despite positive market trends.
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. 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. 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.
The upgrade reflects confidence in Fluence's long-term growth potential, particularly as demand for its Smartstack systems from data centers is expected to drive significant revenue increases, despite recent challenges in profitability.
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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: 25.230
Low
8.00
Averages
16.25
High
26.00
Current: 25.230
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.
Fluence Energy Announces Public Offering of 20 Million Shares
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- Underwriter Lineup: The offering is being managed by prominent financial institutions including Barclays, Morgan Stanley, and Goldman Sachs, which enhances market confidence in Fluence, with the offering expected to close on May 15, 2026.
- Additional Share Option: The selling stockholders have granted underwriters a 30-day option to purchase an additional 3 million shares, a flexible arrangement that may further enhance market liquidity and reflects expectations for Fluence's future growth.
- Registration Statement Validity: The automatic shelf registration statement filed by Fluence with the SEC on May 12, 2026, has become effective, ensuring compliance for this offering and demonstrating the company's diligence in adhering to regulatory requirements.
See More
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- Additional Purchase Option: The selling stockholders are expected to grant underwriters a 30-day option to purchase an additional 3 million shares, a flexibility that may further enhance market demand for the stock.
- Market Reaction: Following the public offering announcement, FLNC shares fell 6.86% in premarket trading to $23.50, reflecting market concerns over the dilution effect of the offering, which could impact short-term stock performance.
- Strategic Implications: This offering not only provides Fluence Energy with necessary funding but also may help solidify its competitive position in the rapidly growing energy storage market by enhancing liquidity and market confidence.
See More
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- Strategic Partnerships: During the quarter, Fluence signed master supply agreements with two hyperscale customers, supporting a majority of its 12 GW data center pipeline and further solidifying its market position.
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- Decline in Consumer Confidence: The University of Michigan's May consumer sentiment index fell to a record low of 48.2, below the expected 49.5, highlighting economic uncertainty that could impact future consumer spending.
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See More
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See More
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- Offering Size: Fluence Energy has announced a public offering of 20 million shares of Class A common stock at a price of $21.00 per share, indicating the company's active engagement in the capital markets, although it will not directly benefit from this 100% secondary offering.
- Underwriter Lineup: The offering is being managed by prominent financial institutions including Barclays, Morgan Stanley, and Goldman Sachs, which enhances market confidence in Fluence, with the offering expected to close on May 15, 2026.
- Additional Share Option: The selling stockholders have granted underwriters a 30-day option to purchase an additional 3 million shares, a flexible arrangement that may further enhance market liquidity and reflects expectations for Fluence's future growth.
- Registration Statement Validity: The automatic shelf registration statement filed by Fluence with the SEC on May 12, 2026, has become effective, ensuring compliance for this offering and demonstrating the company's diligence in adhering to regulatory requirements.
See More
Fluence Energy Launches 20 Million Share Public Offering
- Public Offering Announcement: Fluence Energy has announced an underwritten public offering of 20 million shares of its Class A common stock by certain controlling stockholders, which is expected to provide additional capital to support future growth.
- Additional Purchase Option: The selling stockholders are expected to grant underwriters a 30-day option to purchase an additional 3 million shares, a flexibility that may further enhance market demand for the stock.
- Market Reaction: Following the public offering announcement, FLNC shares fell 6.86% in premarket trading to $23.50, reflecting market concerns over the dilution effect of the offering, which could impact short-term stock performance.
- Strategic Implications: This offering not only provides Fluence Energy with necessary funding but also may help solidify its competitive position in the rapidly growing energy storage market by enhancing liquidity and market confidence.
See More
Fluence Energy Q2 Results Exceed Expectations
- Performance Boost: Fluence Energy reported Q2 revenue of $464.89 million, indicating accelerated order activity and record backlog, which reflects strong demand in the renewable energy storage market.
- Price Target Increase: Goldman Sachs raised Fluence's price target from $20 to $22 while maintaining a Buy rating, showcasing confidence in the company's future growth potential, particularly related to data center opportunities.
- Strategic Partnerships: During the quarter, Fluence signed master supply agreements with two hyperscale customers, supporting a majority of its 12 GW data center pipeline and further solidifying its market position.
- Financial Outlook: The company maintained its FY26 adjusted EBITDA outlook of $40 million to $60 million, with the CFO stating that the liquidity position provides flexibility to support ongoing growth plans and strategic initiatives for profitable growth.
See More
U.S. Stocks Close Higher, Nasdaq Hits Record High
- Strong Market Performance: The S&P 500 rose by 0.84% and the Nasdaq 100 increased by 2.35%, reaching record highs, reflecting market optimism driven by robust corporate earnings despite concerns over the Iran conflict.
- Support from Employment Data: U.S. nonfarm payrolls for April increased by 115,000, surpassing expectations of 65,000, with March figures revised up to 185,000, indicating resilience in the labor market and further boosting stock prices.
- Decline in Consumer Confidence: The University of Michigan's May consumer sentiment index fell to a record low of 48.2, below the expected 49.5, highlighting economic uncertainty that could impact future consumer spending.
- Oil Market Volatility: Iran's seizure of an oil tanker in the Strait of Hormuz led to a rise in WTI crude prices, with expectations that this incident will affect global oil supply, potentially causing further price fluctuations.
See More
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- Fluence Energy Surge: Fluence Energy's stock soared nearly 30% after its fiscal second-quarter EBITDA exceeded Wall Street estimates, following a prior session surge of about 40%, indicating strong market confidence in its growth potential and attracting more investor interest.
- Corpay Raises Guidance: Corpay shares jumped 10% after the company raised its full-year earnings guidance to a range of $26.30 to $27.10 per share, surpassing analyst expectations of $26.05, reflecting robust performance in the corporate payments sector and potentially increasing market share.
- Akamai Technologies Rises: Akamai's stock surged 20% after securing an $1.8 billion commitment from a leading U.S. frontier model provider for its Cloud Infrastructure Services, indicating strong demand in the market, while also reporting a first-quarter adjusted earnings beat that bolstered investor confidence.
- Upwork Restructuring Impact: Upwork's shares tumbled 21% following its announcement of a 24% workforce reduction to ensure profitability, despite slightly lower-than-expected first-quarter earnings and revenue, which may affect its future competitive position and investor sentiment.
See More
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- Upgrade Impact: Roth MKM upgraded Fluence Energy from Neutral to Buy, doubling the price target from $13 to $26, anticipating that strengthening order flow will drive further growth, significantly boosting market confidence.
- Significant Order Growth: Year-to-date orders for FY 2026 have reached $2 billion, with approximately half coming from new customers, and analysts believe the company will continue to drive order growth in the coming quarters, especially following master supply agreements with hyperscaler data center clients.
- Gross Margin Recovery: Fluence's gross margins rebounded in Q2, which analysts say further supports confidence in the company's ability to meet its FY 2026 margin guidance, indicating improving profitability.
- Supply Chain Stability: Domestic supply uncertainty has largely been resolved following the ownership transition of the cell manufacturing facility in Smyrna, Tennessee, while Fluence has also secured a second battery cell supply source starting in FY 2027, enhancing the reliability of its production capabilities.
See More
