Canaccord Adams reiterated its Buy rating on EnerNOC (ENOC) and raised the price target to $40 following its earnings report.

Hat tip to StreetInsider.com for the following analyst comment:
 
“EnerNOC’s management team delivered on its promise of significant leverage in the business model, driving Q3 revenues to $100M+, generating 50% GMs, 25% OMs (~$13M in cash from ops) and $1.12 in GAAP EPS. As expected, capacity contracts in PJM region carried the upside, comprising 73% of quarterly revenues, as EnerNOC’s aggressive market share gains over the last two years clearly paid off. MW adds were 100, in keeping with seasonal selling patterns. Importantly, the company announced its early entrance into the European demand response market with National Grid, one of the UK’s largest grid operators (and an existing customer in the US). The opportunity for conservation and DR is appealing, with ~63,000 MW of peak demand in that country, with minimal existing DR penetration. Visibility remains very strong near term, as management focuses on accretive growth, with higher expectations (and spending) for energy management and recurring Software as a Service (Saas) business moving into 2010…We reiterate our BUY rating and increase our price target to $40 from $38. Our 2009 revenue/EPS estimates get revised to $186.9M/$(0.33) from $176.8M/$(0.77). Our 2010 estimates increase to $245.0M/$0.12 from $230M/$0.08.”

EnerNOC shares are up a few percent today, but well off the highs.