What Happened?
Shares of electricity storage and software provider Fluence (NASDAQ: FLNC) jumped 21.3% in the afternoon session as investor optimism grew after JPMorgan announced a significant investment program benefiting the battery storage sector and the company's CEO highlighted rising U.S. demand.
The investment firm detailed a $1.5 trillion program spread over ten years, with $10 billion specifically covering key areas for Fluence, including battery storage and grid resilience. Adding to the positive news, Fluence's CEO, Julian Nebreda, noted that strong power demand from data centers was expected to fuel a surge in U.S. orders, projecting that this business would contribute half of the company's global demand. This momentum built on positive news from the previous day when an analyst at Susquehanna raised the stock's price target, pointing to favorable policies like the Inflation Reduction Act and the company's strong backlog.
The shares closed the day at $18.43, up 16% from previous close.
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What Is The Market Telling Us
Fluence Energy’s shares are extremely volatile and have had 79 moves greater than 5% over the last year. But moves this big are rare even for Fluence Energy and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 20.4% on the news that an analyst at Susquehanna significantly raised the price target on the company's shares. The firm maintained its 'Positive' rating on the stock while increasing the price target to $17.00 from a prior target of $9.00. The optimism was influenced by favorable policy developments, including the Inflation Reduction Act. Analysts also pointed to Fluence Energy's strong domestic manufacturing presence and robust backlogs as factors supporting a positive outlook in the alternative energy sector.
Fluence Energy is up 9.2% since the beginning of the year, but at $18.46 per share, it is still trading 21.4% below its 52-week high of $23.50 from November 2024. Investors who bought $1,000 worth of Fluence Energy’s shares at the IPO in October 2021 would now be looking at an investment worth $527.43.
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