Altus Power Inc

Altus Power, Inc. (NYSE: AMPS) is a commercial-scale provider of serving commercial, industrial, public sector and community solar customers with end-to-end solutions. The Company originates, develops, owns and operates locally sited solar generation, energy storage and charging infrastructure across the nation. It is a developer, owner and operator of large-scale roof, ground and carport-based photovoltaic (PV) and energy storage systems, serving commercial and industrial, public sector and community solar customers.

Key Business & Financial Updates

• Second Quarter Revenue Growth: The company reported total operating revenues of USD 52.5 million for the second quarter of 2024, representing a 13% increase from USD 46.5 million in the same period of 2023. This growth was driven primarily by the addition of new solar energy facilities placed in service over the past twelve months, which led to higher energy sales to customers. The expansion in operational capacity played a key role in boosting overall revenues for the quarter.
• Significant Increase in Net Income: For the second quarter of 2024, the company achieved a GAAP net income of USD 33.1 million, a substantial increase from the USD 3.4 million recorded during the second quarter of 2023. This considerable improvement was primarily attributed to a non-cash gain resulting from the remeasurement of alignment shares. The gain significantly contributed to the overall increase in net income, reflecting the company’s favorable financial positioning during this period.
• Moderate Growth in Adjusted EBITDA: The company’s adjusted EBITDA for the second quarter of 2024 reached USD 31.2 million, marking a 2% increase compared to USD 30.6 million in the same quarter of the previous year. This growth was largely the result of increased revenues from the additional solar energy facilities. However, rising operational and administrative expenses, associated with the company's expanding workforce to support its growth initiatives, partially offset these gains.
• Revised FY2024 Guidance: The company has updated its guidance for FY2024. The revenue forecast has been revised to a range of USD 196-201 million, down from the previously projected USD 200-222 million. Similarly, the adjusted EBITDA outlook has been revised to USD 111-115 million, from the previous range of USD 115-135 million. Despite this adjustment, the company reaffirmed its three-year guidance, projecting a 20-30% compound annual growth rate (CAGR) in megawatts and a 20-25% CAGR for both revenue and adjusted EBITDA.
• Key Financial Highlights for the Second Quarter:
  • Revenues of USD 52.5 million, reflecting a 13% year-over-year increase.
  • GAAP net income of USD 33.1 million, a significant rise from USD 3.4 million in the second quarter of 2023.
  • Adjusted EBITDA of USD 31.2 million, a 2% year-over-year growth.
• Business Achievements and Market Leadership: The company made notable strides in its business operations, increasing its portfolio size by 42% compared to the second quarter of 2023. In addition, the company generated 364 million kilowatt-hours of clean electricity, equivalent to the avoidance of approximately 254,000 metric tons of carbon dioxide emissions annually. The company continues to lead the commercial-scale solar market with a portfolio nearing 1 gigawatt in size, reinforcing its leadership position in the renewable energy sector.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) for the 14-day period is currently at 43.97, exhibiting an upward movement as it recovers from an oversold condition, indicating a potential for trend reversal as the stock is near a key support range of USD 2.80 to USD 3.00. However, the stock remains positioned below both the 50-day and 200-day Simple Moving Averages (SMA), suggesting potential short- to medium-term resistance challenges ahead.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Altus Power, Inc. (NYSE: AMPS) at the closing market price of USD 3.10 as of September 05, 2024. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is September 05, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.s

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.