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Investing.com - Canaccord Genuity has raised its price target on Ameresco (NYSE:AMRC) to $44.00 from $36.00 while maintaining a Buy rating on the energy solutions provider. The stock has delivered an impressive 233% return over the past six months and is currently trading at $40, close to InvestingPro’s Fair Value estimate.
The firm cited rising electricity demand that has increased rates and reduced grid stability, creating favorable conditions for Ameresco’s energy efficiency and distributed energy solutions.
Ameresco management reported seeing "considerable opportunities in new end markets," including electric co-ops, industrial sectors like steel manufacturing, and data centers seeking to deploy large amounts of resilient power capacity.
The company has reaffirmed its long-term growth guidance of 10% revenue and 20% adjusted EBITDA growth in the years ahead, based on business momentum and visibility from project backlog and recurring revenue streams. This follows Ameresco’s strong 22.85% revenue growth over the last twelve months, though InvestingPro data shows the company is trading at a high EBITDA multiple of 23.12x.
Canaccord’s price target increase reflects a valuation multiple expansion to approximately 12x EV/EBITDA on 2027 estimates, up from 11x previously, bringing it in line with Ameresco’s peers. InvestingPro identifies 15+ additional tips about Ameresco, including insights on its debt structure and profitability metrics, available in the comprehensive Pro Research Report.
In other recent news, Ameresco Inc . reported its financial results for the third quarter of 2025, surpassing analysts’ earnings expectations. The company achieved an earnings per share (EPS) of $0.35, which was significantly higher than the forecasted $0.24. Revenue also exceeded projections, reaching $526 million compared to the anticipated $518.4 million. These results highlight a 45.83% surprise in EPS, underscoring the company’s strong performance in the quarter. Additionally, the positive earnings announcement was followed by an increase in Ameresco’s stock price during regular and after-hours trading. While the stock movement is noteworthy, the primary focus remains on the company’s financial achievements. These recent developments reflect Ameresco’s ability to outperform market expectations.
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