Evercore ISI: Fluence Energy shares could climb to $47

Shares of Fluence Energy Inc (NASDAQ: FLNC) are up more than 4.0% on Tuesday after Evercore ISI said last night the stock had significant upside potential.

Evercore ISI sees an about 30% upside in FLNC

Evercore’s James West assumed coverage of Fluence Energy on Monday with a price target of $47 that represents a 30% upside from here. In his note, the analyst called the stock a “must-own” in the energy storage sector.

West agrees that there are about a dozen battery names that are worth owning at this point in time. But Fluence has the “scarcity value” as it’s in the energy storage business – one that isn’t nearly as crowded.

The news comes less than a month after the renewable energy company debuted on the Nasdaq Stock Exchange at a per-share price of $35. The IPO brought in nearly a billion-dollar in new capital.

West’s remarks on CNBC’s ‘The Exchange’

Reiterating his bullish call on CNBC’s “The Exchange”, West predicted a bright future for the Virginia-based company.

According to the Evercore ISI analyst, the sooner Fluence hits profitability, the faster it will turn from a “revenue growth story” to a “profitable growth story”, which ultimately will favour higher valuation.

A day earlier, Fluence said it had signed a contract with Enel X to provide Fast Reserve Grid Services for Terna. The U.S. firm currently boasts a market cap of $6.13 billion.