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On Tuesday, Stifel analysts maintained a positive stance on Ameresco (NYSE:AMRC) shares, reiterating a Buy rating and an $18.00 price target. The firm’s analysis followed Ameresco’s first-quarter earnings release for the year 2025, which showcased revenue and adjusted EBITDA figures that exceeded expectations by 17%. The company reported $352.8 million in revenue and $40.6 million in adjusted EBITDA. According to InvestingPro data, the stock has experienced significant volatility, with shares down over 63% in the past six months, though current analysis suggests the stock is slightly undervalued at its current price of $13.82.
Ameresco’s management reaffirmed their revenue and adjusted EBITDA targets for the full year of 2025, aiming for $1,900 million and $235 million, respectively, at the midpoint of their projections. These targets are both higher than Stifel’s current projections. The first quarter’s performance was bolstered by robust execution, which led to the accelerated implementation of approximately $30 million in project revenue. InvestingPro data shows the company maintains a current ratio of 1.46, indicating sufficient liquidity to meet short-term obligations, despite operating with significant debt levels at 2.24 times equity.
The company also addressed investor concerns during their conference call. Management clarified that a previously canceled project has been redefined, and two projects that had been on hold are now back on track. Although there is some uncertainty surrounding federal projects due to the new administration, management’s comments have increased analysts’ confidence in the company’s outlook.
Federal contracts currently represent about 30% of Ameresco’s project backlog. However, these are expected to comprise less than 20% of the company’s project revenue by 2025. Stifel’s analysts view the first-quarter results, the guidance for 2025, and the confidence expressed in the company’s project pipeline as positive indicators for Ameresco’s stock performance. InvestingPro analysis reveals an overall Financial Health score of "FAIR," with 13 additional exclusive ProTips available to subscribers. For deeper insights into Ameresco’s financial position and growth prospects, investors can access the comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.
In other recent news, Ameresco’s first-quarter 2025 earnings report revealed better-than-expected results, with an EPS of -$0.11 beating the forecast of -$0.16 and revenue reaching $352.8 million, surpassing the expected $333.33 million. The company experienced an 18% year-over-year increase in revenue, with strong growth in its projects and energy asset segments. Ameresco’s total project backlog grew by 22%, reaching a record $4.90 billion, supported by strong bookings. Analyst Kashy Harrison from Piper Sandler revised the stock price target to $21, down from $30, while maintaining an Overweight rating due to Ameresco’s robust start to the year. Meanwhile, Jefferies analyst Julian Dumoulin-Smith raised the price target to $11 from $10, citing the company’s exceeded revenue and EBITDA expectations. Ameresco’s management reaffirmed its guidance for the full year, projecting revenue of $1.9 billion and adjusted EBITDA of $235 million. The company also provided updates on its federal projects, which have resumed after previous cancellations and pauses, and indicated minimal impact from tariffs for 2025.
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