NEW YORK, August 25, 2026, 15:22 EDT
- Shares of Fluence Energy increased by 4.7% to $11.37 as of 13:06 EDT, following an 8.7% gain prior to the market opening.
- UBS raised its rating on the stock to Neutral and increased the price target to $12 from $9.
- The bank projects yearly revenue to rise by 22% through 2030.
- Fluence has yet to process $400 million in postponed deliveries in fiscal 2027.
Shares of Fluence Energy NASDAQ:FLNC climbed 4.7% on Tuesday following UBS’s decision to withdraw its Sell rating. The stock was trading at $11.37 as of 13:06 EDT, pulling back from an earlier premarket increase of 8.7%.
The upgrade is based on a subtle distinction. UBS interprets Fluence’s recent reduction in guidance as a postponement of revenue, not a loss of demand.
This puts fiscal 2027 execution at the core of valuation. Fluence deferred $400 million in project deliveries to that year following construction and manufacturing delays.
UBS analyst Jon Windham upgraded the stock to Neutral from Sell. He increased the price target to $12, up from $9, and projected 22% yearly revenue growth through 2030. The new target was just 5.5% above the price at midday.
| Firm | Rating | Latest target | Action date |
|---|---|---|---|
| UBS | Neutral | $12, previously $9 | Aug. 25 |
| GLJ Research | Hold | $13, cut from $26 | Aug. 20 |
| Citi | Buy | $20, lowered from $24 | Aug. 14 |
| Roth MKM | Buy | $18, revised from $26 | Aug. 7 |
| BMO Capital | Hold | $14, down from $16 | Aug. 7 |
| Morgan Stanley | Hold | $15, reduced from $16 | Aug. 7 |
The bullish argument is supported by scale. Order intake for the fiscal third quarter came in above $1.44 billion, almost three times higher than the same period a year ago. The backlog hit a company-high $6.4 billion.
Data centers contributed further demand. By July, Fluence had won approximately $850 million in contracts from this sector, with around $550 million coming from hyperscaler deals.
However, the income statement explains UBS’s decision to maintain a Neutral rating. Quarterly revenue rose 7.9% to $649.8 million, while GAAP gross margin declined to 5.1% from 14.8%.
Fluence posted a net loss of $44.3 million. The company’s adjusted EBITDA came in at negative $29.3 million.
Management lowered its fiscal 2026 revenue forecast to a range of $2.9 billion to $3.1 billion. The midpoint of $3.0 billion represents an 11.8% decrease from the earlier midpoint target of $3.4 billion.
The midpoint for adjusted EBITDA dropped by $60 million, reaching negative $10 million. Guidance for annual recurring revenue was unchanged at $180 million.
Chief Financial Officer Ahmed Pasha stated that the postponed revenue stayed in backlog and was anticipated in fiscal 2027. Fluence closed June with $863 million in liquidity, which included roughly $365 million in total cash.
The current valuation reflects a partial rebound. With shares at $11.37, Fluence’s market capitalization is close to $2.1 billion, or roughly 0.70 times the midpoint of its projected fiscal 2026 revenue.
Risks: The backlog might not convert according to plan or achieve projected margins. Delays in manufacturing, higher supply costs, and project scheduling could result in cash flow remaining soft even with robust order levels.
Tuesday’s advance eliminated the most negative official rating among notable recent recommendations. The key operating issue remains unresolved. Investors now require proof of delivery, rather than a fresh demand outlook.
