FLNC Stock Jumps Again As Hyperscaler Agreements Fuel Bullish Calls — Why Analysts Think The Rally Isn’t Over

• Roth Capital highlighted significant commercial momentum in Fluence Energy’s business in their latest note, stating that the company’s orders are up more than two times year-to-date.
• The firm expects further upside in the stock, citing Fluence’s strengthening order momentum, expanding growth opportunities, and improving profitability.
• Analysts at Canaccord were similarly optimistic, stating that Fluence Energy’s two new master supply agreements with hyperscalers are a game-changer for the company.

Shares of Fluence Energy Inc. (FLNC) continued to rip in Friday’s pre-market trade after a searing 40% surge on Thursday, and Wall Street thinks that the stock is not going to stop soaring anytime soon.

According to TheFly, analysts at Roth Capital doubled their price target for Fluence Energy to $26 from $13 while upgrading it to ‘Buy’ from ‘Neutral’. The firm’s new price target implies a 48% upside potential from the stock’s closing price on Thursday.

Fluence Energy shares were up nearly 26% in Friday’s pre-market trade, with the stock having already soared nearly 56% this week and reversing a three-week trend of declines.

Why Did Wall Street Turn Bullish On FLNC?

Roth Capital highlighted significant commercial momentum in Fluence Energy’s business in its latest note, stating that the company’s orders are up more than two times year-to-date.

Roth Capital expects further upside in the stock, citing Fluence’s strengthening order momentum, expanding growth opportunities, and improving profitability.

Analysts at Canaccord were similarly optimistic, stating that Fluence Energy’s two new master supply agreements with hyperscalers are a game-changer for the company. Fluence Energy signed two new agreements with major hyperscalers in the second quarter (Q2) and expects to sign its first order in the third quarter (Q3) of its current fiscal year.

Canaccord raised its price target on Fluence Energy to $28 from $25 with a ‘Buy’ rating, noting that the company’s pipeline is growing.

Goldman Sachs analysts also echoed similar sentiments, stating that Fluence Energy’s two new master supply agreements support a majority of its 12-gigawatt pipeline with data centers. The firm hiked its price target to $22 from $20 while keeping a ‘Buy’ rating.

JPMorgan also hiked its price target for FLNC to $17 from $13, while keeping a ‘Neutral’ rating on the stock.

According to Koyfin data, of the 20 analysts covering the stock, four have a ‘Buy’ rating, 12 have a ‘Hold’ recommendation, while four have a ‘Sell’ or ‘Strong Sell’ suggestion.

Why Do FLNC’s New Agreements Matter?

Fluence Energy CEO Julian Nebreda said during the earnings call that these new agreements matter because the company emerged from a highly competitive selection process involving multiple review rounds and strict customer requirements.

The deals establish Fluence as a qualified supplier for two hyperscalers, positioning the company to bid on upcoming near-term data center projects, he said.

“In addition, since our prior call, we have successfully developed a proprietary solution to handle the extreme power usage fluctuations experienced in data centers. Fluence excels at this based on our deep experience with advanced controls and track record managing fast response systems,” Nebreda added.

Nebreda stated that Fluence Energy is seeing U.S. opportunities outpace those in other markets, while adding that the company’s data center pipeline has grown by 30% since the first-quarter (Q1) earnings call in February this year.

FLNC’s Q2 At A Glance

Fluence Energy reported a loss of $0.16 per share in the second quarter (Q2), while revenue came in at $465 million. Wall Street expected a loss of $0.18 per share on revenue of $622 million, according to Fiscal.ai data.

The company reaffirmed its fiscal year 2026 outlook, forecasting revenue of $3.2 billion to $3.6 billion. It also expects its annual recurring revenue to reach $180 million by the end of the fiscal year.

How Did Retail Traders React To FLNC?

Retail sentiment on Stocktwits around Fluence Energy trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels as of this writing.

One user noted that the most interesting aspect of Fluence Energy’s earnings was securing two master supply agreements with major hyperscalers.

Another user called the FLNC stock extremely undervalued.

FLNC stock is down 4% year-to-date, but up 321% over the past 12 months. The iShares Russell 2000 Growth ETF (IWO) and the iShares Russell 2000 ETF (IWM) are up 43% over the past 12 months.

Also See: Dan Ives Says Apple Is A ‘Sleeping Tech Giant’ In AI – Wedbush Sees 40% Upside

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