Ameresco price target raised to $73 from $68 at Craig-Hallum

Craig-Hallum analyst Eric Stine raised the firm’s price target on Ameresco to $73 from $68 and keeps a Buy rating on the shares. The firm notes Ameresco reported mixed Q2 results with revenues above the Street and the guidance range, EBITDA better than expectations and at the upper end of guidance and a modest EPS miss. Ameresco also reported record Project backlog and additions to its Energy Assets in Development, and reiterated its FY23 guidance and expressed ongoing confidence in its long-term targets due to order/backlog strength, the expected positive impact of the IRA and RIN price strength, and emerging international opportunities. The firm thinks Q2 is another illustration of the strength of the company’s business and value proposition to customers, but also the project nature of its platform and move to larger projects.