This report is an updated version of the report published on 19 July 2023 at 1:42 AM ET.

Ameresco Inc.

Ameresco Inc. (NYSE: AMRC) provides energy efficiency solutions for facilities in North America and Europe.

Investment Rationale – SELL at USD 59.06

• Profit Booking: AMRC has breached the Resistance 2 level suggested in the report on April 27, 2023. Thus, it presented a profit booking opportunity.
• Technical Indicator: The momentum oscillator 14-Day RSI (~74.34) is approaching the overbought zone; and thus, price can face correction in the short term.
• Overvalued Multiples: On a 12–month forward basis – key trading multiples (EV/EBITDA, Price/Earnings, and Price/Book) are higher than the median of the Renewable Energy industry.
• Key Risks and Uncertainties: The global factors have continued to result in global supply chain disruptions, certain governmental travel and other restrictions, and inflationary pressures.

AMRC Daily Chart

Valuation Methodology: Price/Earnings Approach (FY24E) (Illustrative)

Considering the target levels achievement, current trading levels and associated risks, it is prudent to book profits at the current levels. Hence, a ‘Sell’ rating has been provided on the stock at the closing price of USD 59.06 as of July 18, 2023.

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 18, 2023. 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: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

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