Jefferies Upgrades Ameresco to Buy, Sets Price Target at $39
Jefferies Financial Group has upgraded shares of Ameresco (NYSE: AMRC) from a hold rating to a buy rating, as detailed in a research report released on August 4, 2023. The firm has set a new price target of $39.00 for the utilities provider, significantly higher than the previous target of $19.00. This shift reflects growing confidence in Ameresco’s market position and financial performance.
Several other investment firms have also revised their ratings on Ameresco recently. On September 2, Robert W. Baird raised its rating from “neutral” to “outperform,” increasing its price target from $23.00 to $35.00. Similarly, UBS Group upgraded its rating from “sell” to “neutral” and adjusted its target price from $11.00 to $23.00. Additionally, Wall Street Zen elevated its rating from “sell” to “hold” on September 20, while B. Riley boosted its price objective from $22.00 to $32.00.
Analysts have shown increasing optimism about Ameresco’s prospects. Currently, one investment analyst rates the stock as “strong buy,” six as “buy,” and one as “hold.” According to data from MarketBeat, the average rating for Ameresco is “buy,” with a consensus target price of $28.00.
Strong Financial Performance Drives Upgrades
Ameresco recently reported its quarterly earnings on August 4, 2023, revealing earnings per share (EPS) of $0.27, surpassing the consensus estimate of $0.06 by $0.21. The company achieved a net margin of 3.34% and a return on equity of 7.00%. Revenue for the quarter was reported at $472.28 million, exceeding expectations of $415.30 million. This marks a 7.8% increase in revenue compared to the same quarter the previous year.
Looking ahead, Ameresco has set its fiscal year 2025 guidance at EPS between $0.700 and $0.900. Analysts forecast an average EPS of $1.15 for the current fiscal year, suggesting a positive outlook for the company.
Institutional Investors Show Confidence
Recent activity among institutional investors also reflects growing confidence in Ameresco. Hedge funds and institutional investors have been modifying their stakes in the company. For instance, Janney Montgomery Scott LLC initiated a new position valued at approximately $1,043,000 during the first quarter. Allspring Global Investments Holdings LLC increased its holdings by 54.0%, now owning 16,964 shares worth $205,000 after purchasing an additional 5,949 shares.
Rock Point Advisors LLC reported a remarkable 97.7% increase in its position, owning 516,971 shares valued at $6,245,000. Inspire Investing LLC also raised its position by 68.0%, bringing its total to 28,688 shares worth $347,000. Overall, institutional investors and hedge funds now control 99.24% of Ameresco’s stock, indicating strong institutional backing.
Founded as a clean technology integrator, Ameresco operates in energy efficiency and renewable energy sectors across the United States, Canada, Europe, and beyond. The company offers a variety of services, including energy efficiency solutions, infrastructure upgrades, and renewable energy supply solutions, catering to diverse businesses and organizations.
As analysts evaluate Ameresco’s potential and institutional investors continue to invest confidently, the company’s future in the energy sector appears promising.
