UPDATE 1-EnerNOC shares jump on FY profit view

Thu May 6, 2010 10:57am EDT

* Pritchard, Janney Montgomery up EnerNOC to "buy"

* Upgrades come on the back of FY view

* Raymond James says sees room for future growth

* Shares rise as much as 11 pct

By Adveith Nair

BANGALORE, May 6 (Reuters) - Shares of EnerNOC Inc (ENOC.O) rose as much as 11 percent Thursday, a day after the energy monitoring and efficiency services company raised its full-year profit view, prompting at least two brokerages to upgrade ratings on the stock.

Shares rose as much as 11 percent to a high of $31.60, before paring some gains to trade up 5 percent at $39.93 Thursday morning.

Over 500, 000 shares changed hands in intra-day trade, twice the compamy's 10-day average volume. The shares, among the highest percentage gainers Thursday on Nasdaq, have so far doubled since a July 2009 year-low.

"We are upgrading EnerNOC to buy from neutral on a better outlook for 2011 and 2012, driven by strong demand response and upside from new SMART suite applications," Janney Montgomery said in a note to clients.

Boston-based EnerNOC pays customers to reduce energy consumption during peak hours, when utility supplies are stretched.

EnerNOC, in turn, gets paid from utilities for managing a certain amount of capacity on their network and lowering the load on the electrical system.

For the latest first-quarter, the company reported an adjusted loss of 41 cents a share, compared with estimates of a loss of 69 cents a share. It also increased its full-year revenue and profit view. [ID:nWNAB6780]

Pritchard Capital raised its rating on the company's stock to "buy" from "neutral," and increased its price target on the company's stock by $4 to $36.

The brokerage said it expects the company to get some incremental Pennsylvania Act 129 business and do well in the PJM auction next week.

"EnerNOC has been competitive and done well on previous PJM auctions. We expect them to have decent results when they are announced next week," Pritchard said.

PJM, or the Pennsylvania, Jersey, Maryland Power Pool, which accounted for more than half of the company's sales in 2009, coordinates the movement of wholesale electricity in more than 10 states in the United States.

The Pennsylvania Act 129, meanwhile, forces utilities in the state to reduce their peak load by using third-party providers.

Analysts at Raymond James reiterated their "outperform" rating and a $38 price target on the company's stock.

"Our constructive stance on EnerNOC reflects our positive thesis on the expansion of demand response in the U.S. power market, and EnerNOC's leading market position and impressive track record of execution," Raymond James analysts said.

"There is plenty of running room for future growth." (Reporting by Adveith Nair in Bangalore; Editing by Prem Udayabhanu)

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