FLNC Stock Alert: What to Know as Fluence Energy Cuts Guidance

Fluence Energy (FLNC) stock tanked on Sept. 17 after the energy storage products specialist trimmed its guidance for the full financial year. 

As investors responded to the disappointing outlook, FLNC’s relative strength index (RSI) crashed into the mid-20s, indicating oversold conditions that often trigger a near-term rally. 

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Following today’s selloff, Fluence Energy shares are down more than 65% versus its year-to-date high. 

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Fluence Energy Stock Sinks on Disappointing Guidance

FLNC management now expects full-year revenue to come in at $2.4 billion, meaningfully below its previous guidance of $3 billion. 

Adjusted EBITDA losses are also seen expanding to about $200 million this year, due to persistent manufacturing and supply chain bottlenecks. 

According to the Nasdaq-listed firm, a significant delay in ramping up its Houston facility is preventing it from converting its record backlog into realized revenue. 

In fact, deliveries worth hundreds of millions of dollars have been postponed to next year, it added.

That said, Fluence Energy stock has a history of gaining nearly 17% on average in October, a trend that significantly improved its near-term appeal, especially after the massive pullback on Thursday.

BNP Paribas Lowers Price Target on FLNC Shares

Responding to the downward revision, BNP Paribas analysts trimmed their price target on FLNC stock to $5, indicating potential for another 22% decline from current levels. 

The investment cited growing anxiety surrounding Fluence Energy’s deteriorating cash position and high burn rate for the “Underperform” rating. 

With delivery setbacks freeing cash inflow, BNP Paribas emphasized that the company’s near-term operational visibility has weakened significantly. 

The bank warned that until manufacturing bottlenecks normalize, the risk of continued cash drain could severely constrain FLNC’s financial flexibility. 

This leaves the stock vulnerable despite the oversold technical setup. 

How Wall Street Recommends Playing Fluence Energy

Heading into Sept. 17, Wall Street had a consensus “Hold” rating on Fluence Energy, albeit with a mean price target of $15.44 indicating potential for meaningful upside from here. 

However, it’s reasonable to expect significant downward revisions, like that of BNP Paribas, as analysts move to bake in management’s lowered full-year outlook into their estimates in the weeks ahead. 

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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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