What Happened?

Shares of energy and renewable energy projects company Ameresco (NYSE: AMRC) jumped 9.1% in the morning session after Jefferies upgraded the stock to Buy from Hold and more than doubled its price target to $39 from $19. 

The investment bank pointed to reduced execution risks and lower uncertainty surrounding the Inflation Reduction Act as key factors for its decision. The firm's analysts noted that despite the stock's recovery from its April lows, they believed there was potential for more upside. They pointed to expected data center announcements and a revival in the company's Projects business as future drivers. Jefferies described this as the beginning of a 'growth era' for Ameresco following a challenging period for the company.

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What Is The Market Telling Us

Ameresco’s shares are extremely volatile and have had 58 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 1.9% on the news that the company, along with its partners Republic Services and U.S. Energy, announced the completion of a renewable natural gas (RNG) facility. 

The new facility is located at the Lee County Landfill in Dixon, Illinois. This event was significant as it marked the 15th renewable energy project completed through the long-standing collaboration between Ameresco and Republic Services. The companies hosted an open house to celebrate the milestone. This steady progress in developing energy projects highlights the strength of the partnership and Ameresco's consistent execution in the renewable energy sector, which investors viewed positively.

Ameresco is up 38% since the beginning of the year, but at $34.69 per share, it is still trading 10.5% below its 52-week high of $38.78 from September 2024. Investors who bought $1,000 worth of Ameresco’s shares 5 years ago would now be looking at an investment worth $1,092.

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