FLUX Stock Forecast & Price Target

Flux Power Holdings Inc. is projected to achieve significant revenue growth, with projections showing an increase from $42.3 million in FY22 to $69.1 million in FY24, and potentially reaching $115.0 million by FY26, which underscores a robust growth trajectory. The company's gross margins have improved notably, reaching 30.9% in F2Q24, and are anticipated to rise further into the mid-thirties in FY25, driven by production leverage and effective cost management strategies. Additionally, the resilience shown during the pandemic and a strong customer shift towards lithium-ion solutions highlight Flux Power's competitive advantages, as clients benefit from reduced operational inefficiencies and labor costs associated with traditional battery systems.

Flux Power Holdings has consistently experienced annual operating losses, resulting in a significant accumulated deficit. In its F3Q24 results, the company reported a revenue of $14.5 million, marking a 4.2% year-over-year decrease, which indicates potential stagnation amid slowing growth rates in the global lift truck market. Additionally, reliance on a limited customer base poses a substantial risk, as even minor fluctuations in demand from these key clients can considerably affect operating performance and financial stability.