Analysts have raised Ameresco’s price target from $31.00 to $34.22, citing stronger revenue visibility and growth prospects driven by federal partnerships, policy clarity, and a robust project pipeline.
Analyst Commentary
- Bullish analysts cite Ameresco's leading role in federal government initiatives to develop large-scale, AI-optimized data centers and critical energy infrastructure, reflecting strong positioning and future growth prospects.
- Federal land partnerships are seen as a key differentiator for future project pipeline and revenue visibility.
- Resolution of legislative uncertainty, specifically the "One Big Beautiful Bill Act" and the President's Executive Order, removes a major overhang for renewables, providing increased clarity for investors.
- Analysts are focused on management commentary regarding "safe harboring" activity and the resulting impact on backlog growth and project execution.
- Some bearish analysts continue to express caution, citing difficulty in finding conviction in the broader renewables sector despite improved visibility on governmental policy.
What's in the News
- Ameresco and Republic Services completed their 15th renewable natural gas facility, converting landfill gas into pipeline-quality RNG in Illinois, with significant reductions in CO2 emissions and additional facilities in development.
- Secured a contract with Kimberly-Clark UK to design and build the UK's first Green Hydrogen Program in the consumer goods sector, expected to reduce annual carbon emissions by 28,500 tonnes once dual-fuel hydrogen/natural gas boilers become operational.
- Announced plans with the U.S. Navy and CyrusOne to develop a 100 MW AI-optimized data center with dedicated energy infrastructure at NAS Lemoore, targeting federal security standards and advanced AI workloads.
- Launched a $30 million Phase 2 energy efficiency project with University of Illinois Chicago, expected to deliver over $1 million in annual savings and reduce CO2 emissions by over 2,100 metric tons per year.
- Removed from multiple Russell growth and small cap indices, including the Russell 2000 Growth, Russell 3000 Growth, and Russell 2500 Growth benchmarks.
Valuation Changes
Summary of Valuation Changes for Ameresco
- The Consensus Analyst Price Target has significantly risen from $31.00 to $34.22.
- The Future P/E for Ameresco has risen from 26.65x to 29.28x.
- The Consensus Revenue Growth forecasts for Ameresco has risen slightly from 8.8% per annum to 9.1% per annum.
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