JPMorgan raises Altus Power stock rating to Neutral

Published 06/02/2025, 18:36
JPMorgan raises Altus Power stock rating to Neutral

On Thursday, JPMorgan made a notable adjustment to its stance on Altus Power shares, upgrading the company’s stock rating from Underweight to Neutral. Alongside this change, the firm set a year-end 2025 price target of $5.00 for the company’s stock, listed on the NYSE under the ticker (NYSE:AMPS). According to InvestingPro data, AMPS currently trades at $4.90, with analyst targets ranging from $4.00 to $7.00.

The upgrade by JPMorgan follows Altus Power’s announcement from October 2024 that it was seeking strategic alternatives. The decision to shift the rating to Neutral is informed by a recent takeover offer from TPG. JPMorgan’s analysis suggests that the offered price is reasonable given the current market conditions and the company’s financial projections.

According to JPMorgan, the takeover bid, while lower than the initial price when Altus Power went public via a SPAC deal in 2021, is expected to gain shareholder approval. The offer price is based on approximately a 16 times multiple on the forecasted FY25 EBITDA, representing a 44% premium over a broad group of comparable companies in the renewable energy sector and a significant 66% premium compared to Altus Power’s stock price before the announcement of exploring strategic options. InvestingPro analysis shows the company maintains impressive gross profit margins of 77.2% and has achieved revenue growth of 25.9% over the last twelve months.

The company anticipates the completion of the deal in the second quarter of 2025, as per JPMorgan’s commentary. This timeline provides a clear expectation for investors and the market regarding when the potential acquisition may be finalized. For deeper insights into Altus Power’s financial health and valuation metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Altus Power Inc. is set to go private following a definitive acquisition agreement with TPG through its TPG Rise Climate Transition Infrastructure strategy. The all-cash transaction is valued at approximately $2.2 billion, including debt. This partnership is expected to enhance Altus Power’s commercial and community solar offerings, enabling the company to scale operations. Meanwhile, JPMorgan downgraded Altus Power’s stock from "Neutral" to "Underweight" citing concerns about execution.

In the third quarter of 2024, Altus Power reported a 30% increase in revenue and a significant rise in GAAP net income. The company surpassed 1 gigawatt in operating assets, marking its leadership in the commercial solar market. Altus Power reaffirmed its 2024 revenue guidance of $196 million to $201 million and adjusted EBITDA of $111 million to $115 million.

Evolv Technologies Holdings, Inc. announced the appointment of Richard Shapiro to its Board of Directors. Shapiro, with nearly 30 years of investment management experience, will contribute to the Audit Committee as well. His appointment reflects the company’s responsiveness to shareholder input on governance and performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.