Gold is 2025’s best performer. UBS sees more upside
Investing.com - UBS upgraded Ameresco (NYSE:AMRC) from Sell to Neutral on Monday, while more than doubling its price target to $23.00 from $11.00. The stock has shown strong momentum, gaining over 9% in the past week, according to InvestingPro data.
The upgrade reflects strong underlying demand for Ameresco’s turnkey energy solutions and improved visibility into future gross margin expansion, according to UBS.
The investment bank also cited reduced uncertainty regarding potential pauses in U.S. Federal government contracts by the Department of Government Efficiency as a factor in its more positive outlook.
UBS revised its adjusted EBITDA estimates for Ameresco to $238 million, $282 million, and $332 million for 2025, 2026, and 2027, respectively, up from previous estimates of $225 million, $263 million, and $313 million.
With Ameresco trading at approximately 10 times its projected 2026 EBITDA, UBS now considers the shares fairly valued at current levels.
In other recent news, Ameresco reported strong financial results for the second quarter of 2025, surpassing market expectations. The company achieved an earnings per share of $0.27, significantly higher than the forecasted $0.07, representing a surprise of 285.71%. Revenue also exceeded projections, reaching $472.3 million compared to the anticipated $414.2 million, marking a 14.03% surprise. Stifel reiterated its Buy rating on Ameresco, citing the company’s strong performance, particularly in the Projects segment, which delivered revenue 18.7% above expectations. Oppenheimer maintained a Perform rating on Ameresco, acknowledging the company’s ability to beat consensus estimates and maintain its full-year guidance. Furthermore, Ameresco reported a record project backlog, suggesting strong future revenue potential. Canaccord Genuity raised its price target for Ameresco to $36.00, highlighting the company’s execution strength and growth potential. These developments reflect positive sentiment among analysts regarding Ameresco’s recent performance and future prospects.
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