Fluence Energy: Sell On Persistent Execution And Supply Chain Issues

Summary Fluence Energy lowered FY2026 guidance for the second time within just six weeks due to persistent supply chain and execution issues. Going forward, the company intends to "right-size growth" in order to reduce working capital requirements and avoid raising additional capital. As a result, the company's FY2027 revenues are not likely to be anywhere close to the current analyst consensus of $4.0 billion. While liquidity is likely to come down substantially, I do not expect Fluence Energy's controlling shareholders, AES Corporation and Siemens AG, to throw in the towel on the company. Given the company's persistent supply chain issues and lower growth profile, I have slashed my profitability expectations and reduced my price target from $10.30 to $6.20. Reiterating "Sell" rating. I do much more than just articles at Value Investor's Edge: Members get access to model portfolios, regular updates, a chat room, and more. Learn More » zhudifeng/iStock via Getty Images I have covered Fluence Energy, Inc. , or "Fluence Energy" ( FLNC ), previously, so investors should view this as an update to my earlier articles on the company. Recent Stock Price Performance Since my last update on utility-scale energy storage solutions provider This article was written by Henrik Alex 21.12K Followers Follow I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.Despite not being a native speaker, I always try to deliver high quality research to followers and the entire Seeking Alpha community. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.