* 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 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
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
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
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