A few analyst notes to tell you about this morning on EnerNOC (ENOC) which reported earnings last night and Evergreen (ESLR) which reported uninspiring results two days ago. Clearly, these companies are heading in opposite directions and the analysts agree. Hat tip to Street Insider for the following analyst comments.
Both UBS and Citi maintain their Sell ratings on ESLR. UBS lowered the price target to below a buck at .90 and the FY10 EPS loss estimate to -.46. Ouch. Citi has a $1 price target and made the following comment: “We have long argued this should be a wafer company – and now, with the announcement of a 2011 prototype production furnace capable of manufacturing standard size wafers, this becomes an incrementally more interesting story if pricing holds up long enough to allow it to make any money. Fundamentally, wafer costs of $0.65/W are competitive in the current market and imply wafer margins that rival even pure wafer makers like WFR – both of which should make ESLR a somewhat attractive M&A candidate. That said, beyond a potential buyout, we still struggle to see any real earnings here as we are lowering our 2010 EPS estimate to ($0.31) from ($0.28), but raising 2H slightly.”
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While ESLR continues to plummet to all time lows with profitability nowhere in site, demand response leader EnerNOC (ENOC) is on the up and up.
Canaccord Adams is reiterating its Buy rating and has a $40 price target (about 30% higher than current levels). “In sum, a better-than-expected quarter, with record MW additions and increased guidance reflecting EnerNOC’s accelerating momentum within the DR and energy efficiency markets. Post Q1, we qualitatively find the company with very impressive visibility on full-year guidance and MW additions, while EMS cross-selling efforts (and related model transparency) increase going forward.”
Janney Montgomery Scott upgraded ENOC from Neutral to Buy. “We are upgrading EnerNOC to BUY on a better outlook for driven by strong demand response and upside from new SMART suite applications. The Company reported a strong 1Q10, beating consensus on both revenue and EPS and delivering MW under management growth well in excess of our expectations. We believe that the core demand response business will continue to perform well, delivering consistent MW under management growth for the remainder of the year.”
Shares of ENOC are up about 6% today and trying to hold above support around $30. It continues to work on carving out a new base.