Needham & Company Cuts Price Target on EnerNOC (ENOC) Following 3Q

Needham & Company maintained a Buy rating on EnerNOC (NASDAQ: ENOC), and cut the price target to $10.00 (from $18.50), following the company's 3Q15 earnings report. ENOC reported $217M in revenues, $31.7M EBITDA and non-GAAP EPS of $0.74 vs. Street estimates of $232M revenues, 35.5M EBITDA and non-GAAP EPS of $0.54, due to Grid Op. biz.

Analyst Sean Hannan commented, "The challenges within the Grid Operator business at ENOC continue to create material headwinds for the near/medium-term. Particularly in NA through PJM's various programs (downtrend due to previously established weaker capacity auctions/pricing, lack of energy events, portfolio trimming and regulatory ambiguity) in addition to Alberta's precipitous drop in ancillary services pricing, ENOC will need to carefully navigate its path in coming quarters as it effectively uses the established GO biz to subsidize growth in its nascent Enterprise biz. Overall, we continue to be optimistic on the SaaS-led Enterprise segment that is seeing good growth and margin improvement. While we lower our outlook, we focus on software opportunities in the long-run. Reiterate Buy."

For an analyst ratings summary and ratings history on EnerNOC click here. For more ratings news on EnerNOC click here.

Shares of EnerNOC closed at $4.99 yesterday.

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