Guggenheim cuts Fluence Energy PT on tariff challenges

Shares of renewable energy storage provider Fluence Energy FLNC.O fall 7.6% to $3.75

Guggenheim cuts PT on FLNC to $2 from $6, reiterates "sell" rating

Brokerage expects potential changes to FLNC's input costs as expected tariffs on China-sourced lithium ferrous phosphate (LFP) battery cells continue to rise

With LFP cells at ~50% of FLNC's bill of materials, steep tariffs have a significant impact on pricing and profitability for its products, Guggenheim says

Last week, U.S. President Donald Trump hiked duties on Chinese imports to 145%

Guggenheim believe FLNC is likely to alter or withdraw its financial guidance when it reports earnings for the March quarter

10 of 25 brokerages rate the stock "buy" or higher, 14 "hold" and one "strong sell"; their median PT is $8, according to data compiled by LSEG

FLNC down 74.4% YTD, as of last close