Goldman Sachs Downgrades Fluence Energy Inc. (FLNC) to Neutral

Goldman Sachs analyst Brian Lee downgraded Fluence Energy Inc. (NASDAQ: FLNC) from Buy to Neutral with a price target of $9.00.

The analyst comments "Post-close, FLNC reduced its outlook for FY26 for the second time in the past few months, with FY26 guidance now targeted to be ~$2.4bn of revenue and ~($200mn) adj. EBITDA, down from prior midpoints of ~$3.0bn and ~($10mn). According to the company, US production delays again account for the bulk of the shortfall, with the extent of the production issues having been underestimated and needing this further recalibration lower. While backlog remains strong and the company is not seeing customer demand being an issue, costs related to shipment delays, cash flow concerns and the potential for a generally more subdued revenue outlook heading into FY27 give us more pause on the path of the stock from here – which we believe will remain under pressure – despite what appears to be a generally favorable backdrop for battery storage in the US. Given this, we downgrade FLNC to Neutral (from Buy), as our call to stick with the stock even in the midst of execution challenges has been wrong, and we look for improved execution and ability to more fully capture the strong demand for battery storage before revisiting our positive thesis."

For an analyst ratings summary and ratings history on Fluence Energy Inc. click here. For more ratings news on Fluence Energy Inc. click here.

Shares of Fluence Energy Inc. closed at $9.05 yesterday.

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