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On Tuesday, Jefferies analyst Julian Dumoulin-Smith increased the price target for Ameresco (NYSE:AMRC) shares to $11.00, up from the previous $10.00, while maintaining a Hold rating on the stock. Currently trading at $11.63, the stock has experienced significant volatility, having fallen nearly 64% over the past six months. According to InvestingPro analysis, the company appears to be trading below its Fair Value. The adjustment follows Ameresco’s first-quarter earnings, which exceeded expectations in terms of revenue and EBITDA by 13% and 15%, respectively. The performance was notably boosted by an early $30 million contribution from the second quarter within the Projects segment. With last twelve months revenue of $1.77 billion and EBITDA of $172 million, the company maintains profitability despite challenging market conditions. InvestingPro data reveals 13 additional key insights about Ameresco’s financial health and market position.
The analyst acknowledged the positive development regarding Ameresco’s federal projects, which had previously been discussed in the fourth quarter. The unpausing and uncancelling of three federal projects were seen as a favorable sign, potentially reducing concerns related to federal engagements. However, the analyst cautioned that this outlook assumes there are no further impacts from potential reductions in the federal workforce.
In addition to the price target adjustment, the management team at Ameresco reaffirmed their guidance for the full year. This reiteration was highlighted as a positive indicator, particularly in light of the downward revisions in guidance that have been observed within the sector.
The company’s performance, especially in the Projects segment, and the management’s confidence in maintaining their annual guidance, contribute to Jefferies’ outlook on Ameresco stock. The price target increase reflects these factors, even as the firm continues to recommend a Hold rating on the shares.
In other recent news, Ameresco Inc . reported its first-quarter 2025 earnings, revealing better-than-expected results. The company achieved an earnings per share (EPS) of -$0.11, surpassing the forecasted -$0.16, while revenue reached $352.8 million, exceeding the anticipated $333.33 million. This marks an 18% year-over-year revenue growth, driven by a 23% increase in the projects business and a 31% rise in energy asset revenue. Ameresco’s positive performance was accompanied by optimistic guidance for the rest of 2025, with projected revenue of $1.9 billion and adjusted EBITDA of $235 million. The company expects second-quarter revenue to range between $400 million and $425 million, with 60% of total revenue anticipated in the latter half of the year. Ameresco’s strategic focus on energy infrastructure and diversified technology solutions has contributed to a strong start to the year. Additionally, the company highlighted its robust project backlog, which grew 22% to $4.9 billion, enhancing revenue visibility across its businesses. Ameresco management expressed confidence in overcoming potential challenges, including supply chain disruptions and macroeconomic pressures.
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