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Investing.com - Oppenheimer maintained its Perform rating on Ameresco (NYSE:AMRC) following the company’s second-quarter 2025 earnings report that exceeded analyst expectations. The company has remained profitable over the last twelve months, with earnings per share of $1.03 and impressive revenue growth of 30.13%.
The clean energy solutions provider beat consensus estimates on both revenue and earnings while maintaining its full-year 2025 guidance. Ameresco also reported a record project backlog, indicating strong future revenue potential. According to InvestingPro data, however, the company operates with significant debt and is quickly burning through cash, factors that warrant monitoring.
Oppenheimer noted that Ameresco’s backlog is shifting toward new growth areas including independent power producers (IPPs) and commercial and industrial (C&I) projects, which typically carry slightly better profit margins. The firm also identified emerging opportunities in data center energy infrastructure and small modular reactors (SMRs).
The analyst highlighted improved execution by Ameresco in converting its backlog to revenue, evidenced by three consecutive quarters of revenue and EBITDA results that exceeded expectations. This performance comes despite longer project cycles in the industry.
Rising power prices and grid constraints are driving increased demand for energy efficiency and resiliency solutions, which aligns with Ameresco’s service offerings. Oppenheimer has modestly raised its revenue estimates for the company but is waiting for a better entry point before changing its rating. InvestingPro analysis suggests the stock is currently undervalued, though investors should note its high volatility with a beta of 2.27. For deeper insights into Ameresco’s valuation and 11 additional ProTips, check out the comprehensive Pro Research Report.
In other recent news, Ameresco Inc . reported its financial results for the second quarter of 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.27, significantly higher than the anticipated $0.07, representing a 285.71% surprise. Additionally, Ameresco’s revenue reached $472.3 million, exceeding the forecasted $414.2 million by 14.03%. In a separate development, Canaccord Genuity raised its price target for Ameresco to $36.00 from $29.00, maintaining a Buy rating. This adjustment reflects a 24% increase from the previous target, based on the firm’s assessment of Ameresco’s execution capabilities and growth potential. These recent developments highlight Ameresco’s strong financial performance and positive outlook from analysts.
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