Guggenheim Upgrades Fluence Energy Inc. (FLNC) to Neutral Following Mgmt Visit
Guggenheim analyst Joseph Osha upgraded Fluence Energy Inc. (NASDAQ: FLNC) from Sell to Neutral.
The analyst comments "We are upgrading our investment recommendation from Sell to Neutral following a recent conversation with FLNC's leadership. We are also removing our previous price target of $10. • Raising investment rating from Sell to Neutral following recent meeting with management. We recently hosted a conversation with FLNC President and CEO Julian Nebreda, and focused on better understanding FLNC’s plans for continuing to grow the business while improving profitability. Management deserves credit in our opinion for navigating FLNC through a very challenging 2 years, and FLNC currently can claim to have a solid balance sheet and a good competitive position in the US market. Meanwhile, after rising to a peak of $32.23 on February 3, the stock has declined by 51% since then as compared to a 3% decline in the S&P500 over the same time period. That decline, combined with our marginally more positive assessment of FLNC’s competitive prospects, is sufficient to bring valuation back to a level that we regard as reasonable based on our updated estimates. We are accordingly upgrading our investment recommendation from Sell to Neutral, with the primary valuation measure being a ~17x target multiple of FY2028 EBITDA – this yields a valuation close to the stock’s current level."
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Shares of Fluence Energy Inc. closed at $15.99 yesterday.