2023-05-17 12:52:05 ET
Fluence Energy ( NASDAQ: FLNC ) +7.3% in Wednesday's trading after Bank of America upgraded the stock to Neutral from Underperform with a $26 price target, raised from $14, seeing the company as one of few U.S. public pure plays to invest in the fast-growing energy storage system market.
The company's stronger than forecast Q2 results "supports visibility to a better than expected profitability ramp through CY24 while recent guidance on domestic content expands line of sight in CY25/CY26," BofA's Julien Dumoulin-Smith wrote.
Fluence's ( FLNC ) $2.8B of backlog supports a unique line of sight to ~40% Y/Y 2024 revenue growth, the analyst said, adding the company's efforts to secure U.S.-made cells likely translates to higher market share.
However, "while we credit FLNC's first-mover advantage sourcing U.S. cells and realizing volume upside as a result, we believe this will be competed away" after 2026.
More on Fluence Energy:
- Financial and valuation comparison to sector peers
- Analysis: Fluence Energy: On The Right Track But Is The Market
- Stock price return: Up 49.5% YTD, up 181.5% in the past 12 months
For further details see:
Fluence Energy upped at BofA as near-term opportunities balance longer-term risks