Dimple Gosai, an analyst from Bank of America Securities, reiterated the Hold rating on Fluence Energy (FLNC – Research Report). The associated price target was lowered to $5.00.
Dimple Gosai’s rating is based on several factors impacting Fluence Energy’s current market position and future prospects. The company is significantly affected by reciprocal tariffs, particularly concerning imports from China, South Korea, and Vietnam, which have led to a cautious outlook on gross margins. The analyst highlights that while there is potential for Fluence to gain an advantage over peers due to its domestic manufacturing capabilities, the near-term risks associated with tariffs remain a concern.
Furthermore, the report notes that while the valuation of Fluence Energy offers some upside potential, the execution challenges and the impact of tariffs on future gross margins have led to a more conservative price objective. The focus on supply chain mitigation and domestic ramp-up is crucial for the company’s future performance, but the current uncertainties justify a Hold rating. The scenario analysis suggests varying impacts on gross margins, further supporting the cautious stance.
In another report released yesterday, Robert W. Baird also maintained a Hold rating on the stock with a $5.00 price target.
Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FLNC in relation to earlier this year.