Analysts Just Published A Bright New Outlook For Fluence Energy, Inc.'s (NASDAQ:FLNC)

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. Investors have been pretty optimistic on Fluence Energy too, with the stock up 17% to US$23.51 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After this upgrade, Fluence Energy's 19 analysts are now forecasting revenues of US$1.9b in 2023. This would be a solid 11% improvement in sales compared to the last 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. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

See 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Fluence Energy's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 24% growth on an annualised basis. This is compared to a historical growth rate of 43% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.6% annually. So it's pretty clear that, while Fluence Energy's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Fluence Energy's prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Fluence Energy could be worth investigating further.

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. You can learn more about these forecasts, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks 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.