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Buy Rating Affirmed for Flux Power Holdings with Positive Revenue and Margin Outlook – TipRanks Financial Blog

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Maxim Group analyst Matthew Galinko maintained a Buy rating on Flux Power Holdings (FLUXResearch Report) yesterday and set a price target of $9.00.

Matthew Galinko has given his Buy rating due to a combination of factors indicating a positive outlook for Flux Power Holdings. The company’s recent financial results showcased a year-over-year revenue increase of 7%, which, albeit lower than estimates, was accompanied by an impressive growth in gross margins to 30.9%. This margin improvement signals effective cost controls and efficiency gains. Additionally, Flux Power Holdings demonstrated a strong new order intake, with a significant increase from both the previous quarter and year, indicating robust demand for its products.

Galinko’s confidence in maintaining a Buy rating and a $9 price target is further supported by the company’s transition to positive adjusted EBITDA, which suggests reduced risks associated with potential dilutive equity raises. Furthermore, a comparison with industry peers reveals that Flux Power Holdings is trading at a significantly lower EV/revenue multiple, which implies room for growth in valuation. The company’s access to sufficient cash and credit facilities to fund operations adds to the financial stability, reinforcing the Buy rating. Galinko’s target price is underpinned by a revised revenue multiple and a ten-year discounted cash flow analysis, reflecting an optimistic long-term perspective on Flux Power Holdings’ financial health and market position.

Galinko covers the Technology sector, focusing on stocks such as SEALSQ Corp, American Software, and Data Storage. According to TipRanks, Galinko has an average return of -13.3% and a 34.84% success rate on recommended stocks.

In another report released yesterday, H.C. Wainwright also maintained a Buy rating on the stock with a $15.00 price target.

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Flux Power Holdings (FLUX) Company Description:

Flux Power Holdings, Inc. engages in the design, development, and sale of rechargeable lithium-ion energy storage systems for industrial applications. It focuses on electric fork lifts and airport ground support equipment….

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