Piper Sandler initiated coverage on Fluence Energy with an "Underweight" rating and a $6 price target, citing significant concerns about the sustainability of the company's profit margins. The firm's analysts noted that while Fluence has a solid backlog that should support volume growth, their adjusted EBITDA projections for fiscal 2027 are approximately 60% below consensus estimates.
This bearish outlook is compounded by existing operational challenges. Recent analyses have highlighted that production issues at contract manufacturing facilities are expected to delay approximately $400 million worth of deliveries into the next fiscal year. These delays and production inefficiencies could significantly diminish profit margins, adding to the concerns raised by Piper Sandler.