Oppenheimer analyst Noah Kaye maintained a Buy rating on Ameresco Inc (AMRC) today and set a price target of $20. The company’s shares closed yesterday at $17.51, close to its 52-week high of $18.05.
Kaye wrote:
“AMRC beat 4Q18 consensus adj. EBITDA/EPS while guiding FY19 adj. EBITDA midpoint modestly above the Street estimate. Guidance midpoint for 30bps adj. EBITDA margin contraction in FY19 speaks to growth investments, mix, and timing of new energy project ramp. We see setup for margin expansion over our investment horizon as AMRC benefits from project business scale and builds out a robust pipeline of solar and renewable gas development assets. We believe AMRC could be on track to generate $60M incremental runrate adj. EBITDA exiting 2021, a 50% increase over FY18, solely from portfolio growth. As more of AMRC’s profitability drives off recurring revenues (60% of FY18 EBITDA), we see a case for multiple expansion, and take our price target to $20 (from $17).”
According to TipRanks.com, Kaye is a 4-star analyst with an average return of 6.7% and a 56.0% success rate. Kaye covers the Industrial Goods sector, focusing on stocks such as Rockwell Automation Inc, Caterpillar, and BorgWarner.
Ameresco Inc has an analyst consensus of Strong Buy, with a price target consensus of $18.83, implying a 7.5% upside from current levels. In a report issued on March 4, Roth Capital also upgraded the stock to Buy with a $19 price target.
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The company has a one-year high of $18.05 and a one-year low of $9.65. Currently, Ameresco Inc has an average volume of 110.9K.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock.
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Ameresco, Inc. engages in the provision of comprehensive energy services. It offers energy efficiency, infrastructure upgrades, asset sustainability, and renewable energy solutions for businesses and organizations throughout North America and Europe.
