PowerSecure: We Would Be Buyers On Recent Weakness, Says Roth Capital


In a research report issued yesterday, Roth Capital analyst Matt Koranda assigned a Buy rating on PowerSecure International (NYSE:POWR) with a price target of $14, following investor meetings with Eric Dupont, Executive VP of Finance; and John Bluth, IR.

Koranda wrote, “In our view, the recent sell-off was driven largely by macro headwinds for small cap stocks and investor frustration with POWR’s recent Apex deal (the stock lost ~44c/share, or ~$10mn in market cap, the day after the deal was announced. POWR paid $750k in cash for the business, which generated ~$1.1mn in EBITDA in 2013). We would be buyers at current levels as we believe the recent sell-off is overdone. We look for the following key catalysts to drive the stock higher: (1) strong H2’14 execution and (2) additional contract announcements (DG: large data center win and/or cross selling between DG and EE segments; UI: announcements of projects with strong project metrics; EE: LED lighting wins or large ESCO contract wins). We cover key takeaways from our meetings by segment below.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matt Koranda has a total average return of -14.1% and a 0% success rate. Koranda has a -10.1% average return when recommending POWR, and is ranked #3002 out of 3315 analysts.

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