Ameresco price target lowered to $68 from $82 at Craig-Hallum

Craig-Hallum analyst Eric Stine lowered the firm’s price target on Ameresco to $68 from $82 and keeps a Buy rating on the shares. The firm notes Ameresco reported Q4 results which were shy of Street estimates but within the guided range — except for revenue — and its combined backlog remained strong at about $5B with visibility into an additional $1.2B from energy assets not yet contracted. Further, Craig-Hallum believes investors should not let the modest Q4 miss and the Q1 2023 outlook distract from the strong fundamentals across Ameresco’s business and its market leadership in a number of key markets including RNG and energy storage. The firm sees a positive market backdrop, a developing tailwind from the IRA, and an expanding geographic presence.