Analysts Just Made A Substantial Upgrade To Their Fluence Energy, Inc. (NASDAQ:FLNC) Forecasts
Shareholders in Fluence Energy, Inc. (NASDAQ:FLNC) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Fluence Energy has also found favour with investors, with the stock up a notable 17% to US$23.51 over the past week. Could this upgrade be enough to drive the stock even higher?
Following the upgrade, the current consensus from Fluence Energy's 19 analysts is for revenues of US$1.9b in 2023 which - if met - would reflect a notable 11% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 23% to US$0.70. However, before this estimates update, the consensus had been expecting revenues of US$1.7b and US$0.81 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
View our latest analysis for Fluence Energy
It will come as no surprise to learn that the analysts have increased their price target for Fluence Energy 9.9% to US$28.16 on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Fluence Energy, with the most bullish analyst valuing it at US$38.00 and the most bearish at US$18.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Fluence Energy's revenue growth is expected to slow, with the forecast 24% annualised growth rate until the end of 2023 being well below the historical 43% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.6% per year. Even after the forecast slowdown in growth, it seems obvious that Fluence Energy is also expected to grow faster than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Fluence Energy is moving incrementally towards profitability. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Fluence Energy.
Better yet, Fluence Energy is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. For more information, you can click through to our free platform to learn more about these forecasts.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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