Stifel reiterates Buy rating on Ameresco stock after strong Q2 results

Published 05/08/2025, 17:30
Stifel reiterates Buy rating on Ameresco stock after strong Q2 results

Investing.com - Stifel has reiterated its Buy rating and $17.00 price target on Ameresco (NYSE:AMRC), currently trading at $23.71, following the company’s better-than-expected second-quarter 2025 financial results. According to InvestingPro data, analyst targets for the stock range from $11 to $36.

Ameresco reported second-quarter revenue of $472.3 million and adjusted EBITDA of $56.1 million, exceeding Stifel’s expectations by 15.2% and 5.5% respectively. The strong performance was primarily driven by the Projects segment, which delivered revenue 18.7% above Stifel’s forecast. InvestingPro analysis shows the company maintains impressive revenue growth of 30.13% over the last twelve months, though operating with a relatively low gross margin of 14.31%.

Management maintained its full-year 2025 guidance, targeting revenue of $1,900 million and adjusted EBITDA of $235 million at the midpoints, both slightly ahead of Stifel’s current projections. The company also noted that its work with the Federal Government has returned to a normal cadence.

Ameresco’s Projects backlog reached a record $5.1 billion, representing a 4.1% sequential increase and a 15.7% year-over-year growth. The Energy Assets segment also delivered solid performance during the quarter.

Stifel believes the strong quarterly results, maintained 2025 guidance, and solid execution in the Projects segment are positive factors for Ameresco shares.

In other recent news, Ameresco reported impressive financial results for the second quarter of 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.27, significantly exceeding the anticipated $0.07, which represents a surprise of 285.71%. Revenue also outperformed forecasts, reaching $472.3 million compared to the expected $414.2 million, marking a 14.03% surprise. Following the earnings report, Oppenheimer maintained its Perform rating on Ameresco, noting the company’s record project backlog and consistent full-year guidance. Additionally, Canaccord Genuity raised its price target for Ameresco to $36.00 from $29.00, maintaining a Buy rating. This adjustment reflects confidence in the company’s execution capabilities and growth prospects. These developments highlight Ameresco’s strong performance and potential for future revenue growth.

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