Ameresco upgraded to Buy from Neutral at Roth MKM

Roth MKM analyst Craig Irwin upgraded Ameresco to Buy from Neutral with an unchanged price target of $44. The analyst believes the company’s challenges in the second half of 2023 and 2024 are appropriately discounted in the stock while “relative risks are accumulating to the upside. Ameresco has room to moderate weakness by reducing frictional cost growth, and projects in its backlog will eventually be completed, the analyst tells investors in a research note. The firm says issues of falling gross margins in backlog and Inflation Redaction Act headwinds are outweighed by strong core execution comparing to 2021 levels.