What Happened?
Shares of electricity storage and software provider Fluence (NASDAQ: FLNC) jumped 12.9% in the morning session after the company announced it was selected by DRI, a subsidiary of Ukraine's DTEK Group, to supply a major battery storage project in Poland.
The deal involved providing battery storage units for the 133-megawatt Trzebinia project in southern Poland. The facility was slated to be the largest battery storage system taking part in the Polish Capacity Market. This market acted as an 'energy reserve' that could be dispatched quickly to prevent outages during times of high demand, strengthening the country's energy security.
For this key project, Fluence was contracted to deliver its newest battery energy storage system (BESS) solution, the SmartStack. The agreement highlighted Fluence's strategic role as a leader in Europe's utility-scale battery storage sector as the continent moved toward renewable energy.
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What Is The Market Telling Us
Fluence Energy’s shares are extremely volatile and have had 71 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 3 days ago when the stock gained 15.4% on the news that an analyst at JP Morgan raised the company's price target.
The analyst, Mark Strouse, lifted the target to $9 from a previous $8, marking a 12.5% increase. Despite the higher target, the firm kept its "Neutral" rating on the shares, suggesting a cautious but more optimistic outlook. The strong buying pressure sent the stock surging past a key technical milestone, its 200-day moving average, a level often watched by traders as a sign of a potential trend change.
Fluence Energy is down 39.4% since the beginning of the year, and at $10.25 per share, it is trading 56.4% 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 $292.71.
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