Ameresco Shares Plummet: Analysts Respond with Mixed Ratings

Ameresco, Inc. (NYSE:AMRC) experienced a significant decline in its stock price on Tuesday, opening at $36.60, down from a previous close of $40.00. As of the latest trading, shares hovered around $37.11, with a trading volume of 185,811 shares. This sharp drop has prompted analysts to reassess their ratings and price targets for the company.

Analyst Ratings and Price Targets

Several financial institutions have recently updated their assessments of Ameresco. Jefferies Financial Group initiated coverage with a price target of $45.00 and a “buy” rating, highlighting confidence in the company’s prospects. Meanwhile, UBS Group upgraded its rating from “sell” to “neutral,” significantly increasing its target price from $11.00 to $23.00.

On the other hand, B. Riley raised its target price for Ameresco from $32.00 to $45.00, also maintaining a “buy” rating. In contrast, BNP Paribas downgraded the stock from “outperform” to “neutral,” setting a target price of $40.00. Additionally, Weiss Ratings reaffirmed a “hold (C-)” rating for Ameresco shares. Currently, one analyst rates the stock as a Strong Buy, while seven assign a Buy rating, and four categorize it as Hold. According to data from MarketBeat, Ameresco holds an average rating of “Moderate Buy” with a consensus price target of $34.00.

Recent Earnings Report

Ameresco recently announced its quarterly earnings on November 3, 2023. The company reported an earnings per share (EPS) of $0.35, exceeding the consensus estimate of $0.26 by $0.09. The company’s revenue for the quarter reached $525.99 million, surpassing analysts’ expectations of $518.41 million. Year-over-year, Ameresco’s revenue increased by 5.0%, with a net margin of 3.34% and a return on equity of 7.00%. For the fiscal year 2025, Ameresco has set guidance for EPS between $0.700 and $0.900. Analysts project Ameresco will report an EPS of $1.15 for the current year.

Institutional Investor Activity

Institutional investors have recently engaged in trading Ameresco shares. Headlands Technologies LLC acquired a new stake in the first quarter valued at $40,000. CoreCap Advisors LLC also bought in during the third quarter for $50,000. Furthermore, Tower Research Capital LLC TRC increased its holdings by 99.4% during the second quarter, now owning 3,518 shares worth approximately $53,000 after acquiring an additional 1,754 shares. Other notable investments include Wealth Enhancement Advisory Services LLC, which purchased a stake worth $76,000 in the third quarter, and AlphaQuest LLC, which invested $114,000 in the first quarter. Currently, institutional investors hold 99.24% of Ameresco’s stock.

About Ameresco

Ameresco, Inc. is a clean technology integrator that specializes in energy efficiency and renewable energy solutions. Operating in the United States, Canada, Europe, and beyond, the company provides a variety of services, including energy efficiency upgrades, infrastructure improvements, and renewable energy solutions for businesses and organizations. Ameresco is divided into multiple segments, including U.S. Regions, U.S. Federal, Canada, Europe, Alternative Fuels, and Others.

As Ameresco navigates this challenging market environment, investors and analysts will be closely monitoring its performance and strategic decisions in the coming months.