Update shared on20 Aug 2025
Fair value Increased 5.17%Ameresco’s analyst price target was raised to $27.11 as sector policy clarity from the "One Big Beautiful Bill Act" and an upcoming Executive Order drove improved sentiment despite lingering uncertainties, prompting a modest upward revision to fair value.
Analyst Commentary
- Resolution of the "One Big Beautiful Bill Act" brings policy clarity to the sector.
- Finalization of the President's Executive Order is expected to serve as a market-clearing event.
- Management commentary on safe harboring and its impact on operational strategy is anticipated.
- Analysis is focused on the degree of project backlog additions following regulatory developments.
- Despite adjustments, conviction remains challenging across renewable sector equities due to lingering uncertainties.
What's in the News
- Ameresco reiterated 2025 revenue guidance of $1.85–$1.95 billion.
- Ameresco’s 15th RNG facility with Republic Services commenced operation in Dixon, IL, converting landfill gas into pipeline-quality RNG and targeting a reduction of over 61,000 metric tons of CO2 emissions annually.
- Completed a comprehensive energy-saving project for Southeast New Mexico College, guaranteeing over $141,000 in annual energy savings and a 20-year O&M contract.
- Launched a $30 million HVAC energy efficiency upgrade project at the University of Illinois Chicago, targeting significant operational savings and 2,100+ metric tons of annual CO2 reduction.
- Entered a strategic partnership with Juneau Hydropower to build and operate a 19.8 MW hydroelectric facility in Alaska, increasing Juneau’s baseload clean power by 20% and offsetting 82,012 metric tons of CO2 emissions annually.
Valuation Changes
Summary of Valuation Changes for Ameresco
- The Consensus Analyst Price Target has risen from $25.78 to $27.11.
- The Future P/E for Ameresco has risen slightly from 20.92x to 21.93x.
- The Consensus Revenue Growth forecasts for Ameresco remained effectively unchanged, moving only marginally from 9.0% per annum to 9.1% per annum.
Disclaimer
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