Needham & Wedbush Opposites On EnerNOC (ENOC)

EnerNOC (ENOC) reported very strong earnings results this morning, but traders feel much of that is priced in already as the stock is off about 6% on heavy volume.  Two analysts came out with opposing views.. ah that’s what makes a market eh?  Hat tip to Street Insider for the analyst comments.

Needham & Company reiterated its Buy rating on EnerNOC (ENOC) and $37 price target.  “The demand response space is proving to be fundamentally valuable to utilities, participants and vendors, and EnerNOC’s progress and execution continues to drive growth in this vein. With a strong level of future contracted demand response revenues and a growing energy management business (albeit at small levels), we expect the company to remain at the top of the heap for the foreseeable future…Our 3Q est. of $142M and $0.40 GAAP become $159M and $1.50 (or, $1.65 non-GAAP). Our 2010 est. of $276M and $0.34 becomes $281M and $0.37 (or, $1.00, non-GAAP).”

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Wedbush on the other hand downgraded EnerNOC (ENOC) from Neutral to Underperform based on valuation. They believe the stock is overvalued up here and have a $25 price target.  “With no upside driven by June power events, and continued aggressive investment in the Energy Management business, we believe the stock is significantly overvalued.”

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