Shares of Fluence Energy Inc (NASDAQ: FLNC) are up more than 4.0% on Tuesday after Evercore ISI said last night the stock had significant upside potential.
Evercore ISI sees an about 30% upside in FLNC
Evercore’s James West assumed coverage of Fluence Energy on Monday with a price target of $47 that represents a 30% upside from here. In his note, the analyst called the stock a “must-own†in the energy storage sector.
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West agrees that there are about a dozen battery names that are worth owning at this point in time. But Fluence has the “scarcity value†as it’s in the energy storage business – one that isn’t nearly as crowded.
The news comes less than a month after the renewable energy company debuted on the Nasdaq Stock Exchange at a per-share price of $35. The IPO brought in nearly a billion-dollar in new capital.
West’s remarks on CNBC’s ‘The Exchange’
Reiterating his bullish call on CNBC’s “The Exchangeâ€, West predicted a bright future for the Virginia-based company.
They’re backed by AES and Siemens. They have strong backers, they have strong demand, and most customers say that they have the best product in the market. So, we think Fluence has a ton of upside from here. This is our favourite in the battery storage space right now.
According to the Evercore ISI analyst, the sooner Fluence hits profitability, the faster it will turn from a “revenue growth story†to a “profitable growth storyâ€, which ultimately will favour higher valuation.
A day earlier, Fluence said it had signed a contract with Enel X to provide Fast Reserve Grid Services for Terna. The U.S. firm currently boasts a market cap of $6.13 billion.
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