Vikram Bagri, an analyst from Citi, maintained the Buy rating on Altus Power (AMPS – Research Report). The associated price target remains the same with $7.00.
Vikram Bagri has given his Buy rating due to a combination of factors affecting Altus Power’s recent performance and future prospects. One key element is the company’s consistent financial results, with an adjusted EBITDA of $19.7 million meeting the general consensus. Bagri notes the increase in the annual recurring revenue (ARR) by $13 million to $196 million, following the 84MW Vitol acquisition, highlighting that this transaction brings higher than average margins due to its sale leaseback structure. The acquisition, along with Altus Power’s existing portfolio, is expected to bring the company close to its mid-point guidance for the fiscal year’s adjusted EBITDA.
Moreover, the company’s strategic moves, such as the partnership with CBRE to expedite the development pipeline and potentially alter the balance between acquired versus developed assets, are seen as positive steps. With an upcoming analyst day expected to provide further insights into the company’s strategic mix, model updates, and a three-year outlook, there is an anticipation of detailed information to reinforce the company’s position. Additionally, Bagri’s expectation of a 53.8% expected share price return is underpinned by an upgrade to earnings per share projections following the first quarter results, which include a significant change in the fair value of alignment shares. This, along with the steady growth in the company’s operational portfolio, supports the optimistic Buy rating for Altus Power’s stock.
In another report released on April 30, Maxim Group also reiterated a Buy rating on the stock with a $7.00 price target.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is neutral on the stock.
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Altus Power (AMPS) Company Description:
CBRE Acquisition Holdings Inc is a blank check company.
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