Altus Power Inc

Altus Power, Inc. (NYSE: AMPS) is an independent commercial-scale provider of clean electric power 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 roof, ground and carport-based photovoltaic (PV) and energy storage systems, serving commercial and industrial, public sector and community solar customers.

Recent Financial and Business Updates:

• Strategic Financial Milestones in FY 2023: AMPS achieved remarkable financial milestones in fiscal year 2023, with revenues soaring to USD 155.2 million, marking an impressive 53% increase over the previous year. Despite recording a GAAP net loss of USD 26.0 million, contrasting with the net income of USD 52.2 million in the prior year, the company demonstrated substantial growth in Adjusted EBITDA, reaching USD 93.1 million, a notable 59% surge. Furthermore, AMPS exhibited robust cash generation, with net cash provided by operating activities totaling USD 79.4 million, reflecting a remarkable 125% increase compared to 2022, while improving its Adjusted EBITDA margin to 60% for FY 2023
• Strides in Business Operations and Expansion: Throughout 2023, AMPS made significant strides in its business operations, adding approximately 150 enterprise customers to exceed a total count of over 450. The company expanded its portfolio size by an impressive 91% to 896 MW during the year, completing approximately 74 MW of new-build assets and adding around 352 MW of assets in operation. AMPS solidified its position as the largest owner of commercial-scale solar assets in the United States and expanded its presence with new offices on the West Coast, following a strategic platform acquisition. Additionally, with the acquisition of 84 MW from Vitol in January 2024, the company's portfolio nears the significant milestone of 1 gigawatt. Ending the year with USD 219 million in cash provides a solid foundation for AMPS's financing plan in 2024, eliminating the need for expected equity.
• Q4 2023 Financial Performance: In Q4 2023, AMPS reported operating revenues of USD 34.2 million, representing a notable 28% increase compared to the same period in 2022. Despite recording a GAAP net loss of USD 40.0 million, primarily attributed to a non-cash loss of USD 17.7 million from the remeasurement of alignment shares, the company achieved a 5% increase in Adjusted EBITDA, reaching USD 17.3 million. This growth was driven by increased revenue from additional solar energy facilities, offsetting higher general and administrative expenses.
• FY 2023 Results and Outlook for 2024: AMPS reported operating revenues of USD 155.2 million for FY 2023, a substantial increase driven by customer additions and growth in megawatt hours sold. While recording a GAAP net loss of USD 26.0 million, compared to net income in 2022, Adjusted EBITDA significantly increased to USD 93.1 million. Looking ahead, AMPS anticipates robust growth in 2024, with operating revenues projected in the range of USD 200-222 million and adjusted EBITDA in the range of USD 115-135 million, representing significant growth over 2022 figures. 

Technical Observation (on the daily chart)

Presently, the stock has corrected by approximately 35.71% since reaching its highest point in the past 52 weeks, which occurred on February 15, 2024. The Relative Strength Index (RSI) over a 14-day period stands at 36.83, recovering from oversold zone, indicating a state of potential consolidation or a short-term upward momentum. Additionally, the stock's current positioning is below both the 21-day Simple Moving Average (SMA) and the 50-day SMA, which may serve as dynamic short-term resistance levels. Furthermore, the price is currently near an important support zone of USD 4.00 -USD 4.50.

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 ‘Watch’ rating has been given to Altus Power, Inc. (NYSE: AMPS) at the current market price of USD 4.69 as of April 03, 2024, at 07:25 am PDT. 

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.

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance. 

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 April 03, 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.

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.’