BofA Securities has increased its price objective for Fluence Energy Inc. to $32.00 from $25.00 while maintaining a Neutral rating on the energy storage equipment and services provider. The new target sits slightly above the companys referenced trading level of $30.21, after a period of strong share-price appreciation.
The stock has risen substantially over the past year and year-to-date - gains cited in the firms note include a 147.5% jump over the last 12 months and a 56.2% increase so far this year. Technical signals referenced in market commentary suggest the shares may be trading in overbought territory.
In the research note, analyst Dimple Gosai at BofA emphasized that following the rapid re-rating, Fluences upcoming first-quarter results need to provide concrete evidence of improving fundamentals rather than merely restating the companys fiscal 2026 revenue guidance of $3.4 billion. The firm expects the quarter to be seasonally soft, but said investors will be looking for proof points that demand is firming and that management can restore confidence after an approximately $300 million Arizona-related shortfall reported last year.
Fluence is scheduled to release earnings tomorrow. Consensus analyst expectations referenced in market summaries indicate the company is not expected to record a profit this fiscal year, with a forecast EPS of -$0.13 for fiscal 2026.
BofA said it is monitoring whether U.S. orders will broaden beyond the named customers Varco Energy and BrightNight, and whether management can provide clearer commentary on consistent execution. The note highlighted the AESC FEOC status as an item investors will likely seek updates on ahead of a March 31 deadline, noting there are no domestic cell alternatives confirmed for 2026 and that Section 45X tax-credit considerations are relevant to that timeline.
The research also pointed to data centers as a meaningful medium-term opportunity for Fluence, referencing roughly 30 GWh of engagement pipeline, though BofA does not expect material conversion of that pipeline into revenues before 2027.
Recent company results were mixed. Fluences fourth-quarter report missed revenue expectations while exceeding EBITDA forecasts. The company recorded a record quarterly order intake of about $1.4 billion, boosting its backlog to $5.3 billion at the fiscal year end. On the project front, Fluence Energy UK Ltd. and Varco Energy completed Phase 1 of the Sizing John battery energy storage system in the Mersey Ring, with plans to expand the installation further.
Other broker updates on Fluence were varied. UBS maintained a Neutral rating and raised its price target from $8 to $22, citing the companys higher growth rate compared with peers and improved visibility on gross margins. Susquehanna raised its price target to $20 and kept a Positive rating, pointing to Fluences robust backlog. Morgan Stanley lifted its target to $14 from $12 while maintaining an Equalweight rating. UBSs research also flagged potential competitive pressure that could emerge if automotive manufacturers enter the energy storage market, a factor that could affect Fluences competitive positioning over time.
As Fluence moves into the next reporting cycle, the principal issues for investors are clear: can the company convert a sizable backlog into consistent execution, expand order sources in the U.S., and provide clarity on AESC FEOC timing given the March 31 milestone? Absent demonstrable progress on these fronts, the recent price appreciation has increased expectations and raised the bar for upcoming quarterly disclosures.