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Fluence Energy (NASDAQ:FLNC) +2.1% in Wednesday’s trading as Truist Securities initiated coverage with a Buy recommendation and $25 price target, saying the energy storage company is “well positioned to drive outsized growth via its improving economies of scale/supply chain position and differentiated tech.”
Further, Truist analyst Jordan Levy sees Fluence’s (FLNC) “unmatched scale” and software capabilities creating additional opportunities for upside potential in artificial intelligence and data center deployments, both from large-scale PPA-linked contracts and emerging behind-the-meter applications.
The analyst also touts Fluence’s (FLNC) battery energy storage space platform as a vertically integrated “one-stop shop,” setting the company apart from competitors, and notes “first mover advantage” of procuring U.S.-made battery cells that give the company a 6-12 month head start on securing domestic content contracts compared to other large U.S. integrators.
Levy sees Fluence’s (FLNC) leading market share in the BESS space continuing to grow, while believing growth in annual recurring revenues will drive further upside potential to margins.