Fluence Energy Inc. (FLNC) PT Lowered to $4 at Piper Sandler, '2Q'25 Preview: The Perfect Storm Keeps Gaining Momentum'

Piper Sandler analyst Kashy Harrison lowered the price target on Fluence Energy Inc. (NASDAQ: FLNC) to $4.00 (from $10.00) while maintaining a Neutral rating.

The analyst comments "Due to China's dominance of the battery supply-chain, US storage development is most at risk from the tariffs within our coverage. Moreover, excess capacity continues to drive global pricing deflation. Accordingly, FLNC's perfect storm in '25 keeps gaining momentum. In our view, the key questions into earnings are: i) how bad will the estimate revisions be, ii) how quickly can FLNC transition to 100% AESC cells; iii) what margins can FLNC generate using AESC (with 10%/reciprocal tariffs); iv) what's the updated international strategy given the likelihood of continued pricing declines; and v) what's a realistic expectation of normalized earnings power once the dust eventually settles (>$100M of EBITDA required for equity to find floor). The revisions could be significant (PSC/St F25E EBITDA: -$100M/+ $44M); however, answer to the other questions remain unclear. Reducing our PT to $4.00/ sh (from $10.00/sh previously). Neutral rating unchanged."

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