The recent pullback in Fluence Energy creates an attractive opportunity for investors to snap up shares of a company with improving fundamentals and margins, according to Goldman Sachs. Analyst Brian Lee upgraded the energy storage provider to buy from neutral, citing the recent pullback in the solar and energy sector amid the failure of Silicon Valley Bank and the ensuing turmoil that spooked many market participants. “At the same time, we believe the recent pullback in stocks across our solar and energy storage sector on broad concerns over tightening credit availability and availability of financing has created attractive risk-reward,” he wrote, noting that shares have declines about 35% since their peak. Shares gained more than 5% before the bell, with the stock down about 13% this month and 5.3% year to date. The bank’s $29 price target implies 78% upside from Wednesday’s close. FLNC YTD mountain Shares in 2023 Lee expects the company to continue improving its margins as the impact of legacy law-margin contracts dwindle and the company gains better pricing and cost control over new contracts. A stabilizing environment as raw material and logistics cost dwindle should also help shares, he added. At the same time, Lee believes that investors are underappreciating the manufacturing credits Fluence stands to gain from the Inflation Reduction Act. That includes battery manufacturing credits that should drive significant upside to estimates. — CNBC’s Michael Bloom contributed reporting