Fluence Energy’s Strong FY2024 Guidance and Growth Prospects Affirm Buy Rating

BMO Capital analyst Ameet Thakkar reiterated a Buy rating on Fluence Energy (FLNC – Research Report) yesterday and set a price target of $28.00.

Ameet Thakkar has given his Buy rating due to a combination of factors, including Fluence Energy’s confirmation of its fiscal year 2024 guidance and its financial performance. Despite the adjusted revenue projections for the second half of 2024 leaning more towards the fourth quarter, Thakkar considers the company’s reaffirmation of its annual targets and the recent improvement in free cash flow to be more significant. He also notes Fluence Energy’s unique position in the clean energy sector with visible growth prospects for 2025, underpinned by a substantial project pipeline and strong demand for energy storage systems (ESS).
Furthermore, Thakkar underscores the robustness of Fluence Energy’s backlog, which now covers 90% of the projected $3 billion revenue midpoint for 2024, with favorable contract terms ensuring mandatory payments upon delivery. The company’s project pipeline saw a meaningful expansion, increasing confidence in a 35-40% revenue growth for FY2025. The analyst views the consistent bookings that have surpassed revenues for ten consecutive quarters as evidence of Fluence Energy’s execution capabilities and market demand, supporting the optimistic outlook and justifying the Buy rating.

According to TipRanks, Thakkar is an analyst with an average return of -10.5% and a 39.62% success rate. Thakkar covers the Technology sector, focusing on stocks such as First Solar, SolarEdge Technologies, and Sunnova Energy International.

In another report released today, Roth MKM also maintained a Buy rating on the stock with a $27.00 price target.

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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.