Fluence Energy (FLNC) stock offers a more balanced risk/reward profile amid robust demand for battery storage, driven by new solar and storage hybrid installations, retrofits of existing solar plants, and data center demand, UBS Securities said in a note Tuesday.

The brokerage said it expects Fluence revenue to grow at a 22% compound annual growth rate through 2030.

There is potential for the company to secure further hyperscaler orders, likely a significant positive for sentiment and volumes, but data center orders are unlikely to result in a material uplift to gross margins, according to the note.

UBS Securities upgraded the stock to neutral from sell, and boosted its price target to $12 per share from $9.

Shares of Fluence Energy were up 2.9% in Tuesday trading.

Price: 11.17, Change: +0.31, Percent Change: +2.85