Citi said the three companies are well-positioned to benefit from accelerating demand for energy storage, utility-scale solar projects, and the rapid expansion of AI-powered data center infrastructure.
- Citi upgraded FLNC stock to ‘Buy’ from ‘Neutral’ while its reduced price target of $24 still implies more than 56% upside potential from current levels.
- The firm upgraded CSIQ stock, citing improving prospects from the company’s higher-margin U.S. solar module manufacturing strategy and expanding energy storage business.
- Citi believes NRGV shares offer ‘compelling exposure’ toward higher-margin and recurring infrastructure earnings.
Fluence Energy (FLNC), Energy Vault Holdings (NRGV), and Canadian Solar (CSIQ) were on investors’ radar on Wednesday after a bullish brokerage note highlighted the trio as well-positioned to benefit from accelerating demand for energy storage, utility-scale solar projects, and the rapid expansion of AI-powered data center infrastructure ahead of their upcoming quarterly earnings.
At the time of writing, FLNC stock was up 0.8%, NRGV shares traded 1.2% higher, while CSIQ stock jumped 3.8%.
Hyperscaler Contract, Expanding Pipeline Offers Meaningful Upside In FLNC Stock
Citi upgraded FLNC stock to ‘Buy’ from ‘Neutral’ even as its price target was trimmed to $24 from $26, according to The Fly. Despite the reduction, the target still implies more than 56% upside from current levels.
According to Koyfin data, the stock carries a consensus 12-month price target of $18.78. Of the 21 analysts covering the company, five rate it ‘Buy’, 13 recommend ‘Hold’, and three have ‘Sell’ ratings.
Citi said Fluence offers an attractive risk-reward profile ahead of earnings and is well positioned to benefit from rising demand for battery storage from hyperscale customers, including large AI data center operators.
The firm added that a major hyperscaler contract and continued expansion of the company’s project pipeline could provide meaningful upside, according to Investing.com. Last month, Fluence was named a key partner in Nvidia’s (NVDA) Vera Rubin AI factory reference architecture.
Meanwhile, Wall Street expects June-quarter revenue of $809.4 million, significantly more than the $483.3 million it reported a year earlier, while earnings are projected to remain unchanged at $0.01 per share, according to Fiscal.ai.
Citi Bets On CSIQ’s Solar Module Manufacturing Strategy
Canadian Solar (CSIQ) was upgraded to ‘Neutral’ from ‘Sell’ by Citi, which also raised its price target to $18 from $11, implying about 13% upside from current levels. According to Koyfin data, CSIQ has a consensus price target of $18.05. Of 12 analysts, four rate the stock Buy, five Hold, and three Sell.
The firm cited improving prospects from the company’s higher-margin U.S. solar module manufacturing strategy and expanding energy storage business, according to investing.com. Citi said domestic production could benefit from tax credits and stronger sales of high-efficiency Heterojunction Technology (HJT) modules, while storage volumes are expected to roughly double year over year.
Analysts expect second-quarter revenue of $1.14 billion, down from $1.69 billion a year ago, with a $0.91-per-share loss versus earnings of $0.11 last year.
Energy Vault Upgraded As Citi Sees Attractive Entry Point
Energy Vault Holdings was upgraded to ‘Buy’ from ‘Neutral’ by Citi, although the brokerage trimmed its price target to $5 from $5.25. Even so, the new target implies about 42% upside from current levels.
Citi believes the shares offer “compelling exposure” toward higher-margin and recurring infrastructure earnings.
The firm cited improving fundamentals, including a growing project backlog and the appointment of a new chief financial officer with deep energy and infrastructure financing experience, which it believes could lower the company’s cost of capital and support future growth, according to Investing.com.
According to Koyfin data, Energy Vault has a consensus 12-month price target of $5.58. Three of five analysts rate the stock Buy, while one recommends Hold and one Sell. Wall Street expects second-quarter revenue to rise to $14.25 million from $8.51 million a year earlier, with a loss of $0.13 per share.
Retail’s Take On CSIQ, FLNC, NRGV Stocks
Retail sentiment for FLNC stock on Stocktwits trended in the ‘bearish’ territory over the past 24 hours, while sentiment changed to ‘neutral’ from ‘bullish’ for CSIQ. NRGV investors also turned ‘bearish’ on the stock from ‘neutral’ a day earlier.
All three stocks have been under selling pressure so far this year, with FLNC declining 33%, CSIQ slumping around 37% and NRGV shares falling more than 27%.
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