FLNC - Fluence Energy raised to Buy at Guggenheim on strong growth potential

2023-04-05 12:48:47 ET

Fluence Energy ( NASDAQ: FLNC ) is upgraded to Buy from Neutral with a $25 price target at Guggenheim, citing improved confidence in the company's competitive position following a recent series of meetings with management.

But Fluence ( FLNC ) -6.2% in Wednesday's trading on a difficult day for volatile solar and alternative energy stocks.

Guggenheim's Joseph Osha said much of the discussions dealt with the trajectory of Fluence's ( FLNC ) gross margins, prompting the analyst to believe the company has solid conviction in gross margin improvement for FY 2024.

"Our changed stance is a function of a more optimistic valuation outlook, although we do believe there is potential upside to our estimates as the management team focuses its efforts on driving better pricing and controlling product cost," Osha wrote.

Fluence ( FLNC ) "represents a straightforward and attractive way to participate in the growth of energy storage, even considering the stock's recent strong performance," according to the analyst.

Fluence Energy ( FLNC ) recently was upgraded to Buy with a $29 price target at Goldman Sachs .

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