Fluence Energy Shares Surge 5.2% Following UBS Price Target Increase to $8.00

Fluence Energy (FLNC) shares rose 5.2% after UBS raised its price target to $8.00 from $6.00, citing improved near-term gross margin visibility and lower import tariff rates. The company's shares have been volatile, dropping 8.2% last week due to President Trump's announcement against new solar and wind power projects. Despite this, Fluence Energy's stock is down 54.3% YTD and trading 67.1% below its 52-week high.

Fluence Energy (NASDAQ: FLNC) saw its shares rise by 5.2% following UBS's decision to raise its price target to $8.00 from $6.00. The investment bank cited improved near-term gross margin visibility and lower import tariff rates as reasons for the upgrade. This move comes amidst a backdrop of volatility for FLNC's stock, which dropped 8.2% last week due to President Trump's announcement against new solar and wind power projects. Despite these recent fluctuations, FLNC's stock remains down 54.3% year-to-date and is trading 67.1% below its 52-week high.

UBS's update reflects a bullish outlook on FLNC's future prospects, although the neutral rating indicates caution. The company's recent earnings report showed a 24.7% increase in revenue compared to the same quarter last year, despite a negative net margin of -0.76% [1]. This performance has been mixed, with several analysts lowering their price targets, including HSBC, which lowered the stock from a "hold" rating to a "reduce" rating and set a $5.00 price objective [1]. Conversely, Susquehanna boosted their target price from $6.00 to $11.00, giving the company a "positive" rating [1].

Institutional investors have also been active in FLNC's stock. For instance, Millennium Management LLC raised its position by 257.2% during the 4th quarter, and Mizuho Markets Americas LLC increased its stake by 343.1% in the 1st quarter [1]. Despite these changes, FLNC's stock remains volatile, with a 12-month low of $3.46 and a 12-month high of $24.00 [1].

FLNC's earnings per share (EPS) for the quarter were $0.01, beating the consensus estimate of ($0.02) by $0.03. The company's revenue was $602.53 million for the quarter, up 24.7% year-over-year [1]. Analysts expect FLNC to post 0.08 EPS for the current fiscal year [1].

The company's backlog as of the end of its third quarter was $4.9 billion, roughly flat sequentially with the backlog at $4.9 billion as of the end of the second quarter. The dip was driven by tariff-led uncertainty in April, and FLNC stated during its most recent quarter earnings call that its backlog has since grown by $1.1 billion since the end of June. The company was selected by AMPYR Energy Australia, a clean energy developer based in Sydney, for a large 600 MWh battery storage project [2].

FLNC's gross margins have been seeing some weakness, down 400 basis points sequentially on a trailing twelve month basis. The company expects tariffs to continue to pose headwinds to overall margins, and recently opened an automated battery storage manufacturing facility in Vietnam with a capacity of 35 GWh per year. FLNC has a factory in Texas producing thermal management systems, including HVAC and chiller equipment, for its Gridstack Pro battery. The Vietnam factory will produce Gridstack Pro and Smartstack energy storage systems, the Pro being FLNC's primary large-scale front-of-the-meter storage system [2].

Net income for the third quarter at $6.9 million grew from $1.1 million a year ago, with FLNC ending the third quarter with $460 million in cash and cash equivalents. This provides substantial liquidity for continued production expansion and to weather the disruption being wrought on the industry [2].

In conclusion, FLNC is navigating a challenging market environment, but its strong backlog and recent earnings performance suggest potential for growth. Investors should continue to monitor the company's financial performance and analyst ratings to make informed decisions.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-erste-asset-management-gmbh-reduces-stock-position-in-fluence-energy-inc-flnc-2025-08-22/
[2] https://seekingalpha.com/article/4817408-fluence-energy-utility-scale-energy-storage-for-solar-wind-faces-eclipse