Robert W. Baird analyst Ben Kallo upgraded the rating on Ameresco to a Buy today, setting a price target of $35.00.
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Ben Kallo has given his Buy rating due to a combination of factors including a strong demand for Ameresco’s EPC services, particularly in clean energy, and the removal of previous overhangs related to federal contracts. The recent Treasury guidance is expected to boost demand for clean energy projects, providing Ameresco with opportunities to expand its backlog significantly. Additionally, the growing need for power, especially for data centers and infrastructure, underpins the demand for Ameresco’s services.
Despite concerns about Ameresco’s balance sheet, the majority of its debt is tied to long-term energy asset construction, which is expected to be paid down over time. Kallo has adjusted his estimates for 2026 to reflect a more balanced commissioning of energy assets, while maintaining confidence in the company’s 2025 performance. The valuation of Ameresco has been increased, with a price target set at $35, reflecting a slightly discounted multiple compared to peers, but acknowledging the company’s strong project pipeline and anticipated demand surge.
In another report released on August 18, Craig-Hallum also maintained a Buy rating on the stock with a $0.00 price target.