Canaccord Genuity on Sustainability & CleanTech Stocks: Green Building Semimonthly & Notes From Global Growth Conference
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Price: $20.98 -1.46%
Rating Summary:
15 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
15 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Canaccord Genuity on Sustainability & CleanTech Stocks: Green Building Semimonthly
Analyst Eric Prouty said, "Over the past two weeks, our Green Building Index fell 8.5% vs. a 6.3% drop in the S&P 500 Index. Since the start of the year, our Green Building Index is down 21% vs. -10.7% for the S&P 500 Index and -11.7% for the Nasdaq Comp. Index."
"Within our Green Building/Energy Efficiency coverage universe, nine companies made presentations and answered questions in the breakout sessions that followed. Below we highlight some takeaways from these presentations/discussions. Later, we take a look at the July architecture billings data from the American Institute of Architects and what it might mean for companies exposed to new construction trends."
Canaccord Genuity maintains a 'Buy' on Ameresco (Nasdaq: AMRC) and notes: During uncertain times, most companies/organizations are concerned with reducing operating budgets. This is actually beneficial for AMRC, which works with its customer base to reduce operating expenses both quickly and cost-effectively. Management noted that most of its customers have a specific need to upgrade HVAC, lighting, etc., so these expenditures are not necessarily discretionary in nature.
CG maintains a 'Buy' on Apogee Enterprises (Nasdaq: APOG) and notes: Apogee's business appears to be "off the bottom" and the company is seeing slow, gradual growth. Good news is that the nonres. market wasn't overbuilt, so there's not a huge overhang delaying new construction growth.
CG maintains a 'Buy' on ICF International (Nasdaq: ICFI) and notes: ICF addressed the question on everyone's mind: how can the company grow in this budget-tightening environment? ICF demonstrated it has outgrown (on an organic basis) federal discretionary and nondefense discretionary spending levels over the years by taking market share and expanding into non-government high-growth areas (energy efficiency, etc.).
CG maintains 'Buy' Jones Lang LaSalle (NYSE: JLL) and notes: JLL is currently not seeing any impact from recent market uncertainty. While headlines are scary, JLL reported its clients aren’t doing anything out of the ordinary. Overall growth dynamics remain good and management is not hearing of deal fall-out, but that won’t be apparent until future quarters are reported. The current situation does not “feel” like 2008...While the overall financial market is “running from risk,” the commercial real estate market hasn’t embraced risk following the 2008 downturn, so there’s nothing to “run from” at this point, according to JLL.
CG maintains a 'Speculative Buy' on Lime Energy (Nasdaq: LIME) and notes: Management explained in some detail Lime’s business value proposition: The company delivers “expertise, speed and innovation through proven methodologies, policy enablement and scalable solutions.” Importantly, 2011 marks Lime’s year to begin to scale its platform after previously undergoing acquisitions (2008), segment focus (2009), and improving the delivery process (2010).
CG maintains a 'Buy/Best Idea' on NCI Building Systems (NYSE: NCS) and notes: The company disclosed that July quarter bookings will be up 24% q/q and 42% y/y. Company termed it a "meaningful number". Spreads (margins on individual sales) are at near record levels (but obviously overall volumes remain low, impacting overall margins).
CG maintains a 'Buy' on Orion Energy Systems (Nasdaq: OESX)($5pt) and notes: Orion has manufacturing capacity of $250M in sales. Management discussed $300M of business in the pipeline – the expected conversion rate is 30-35 percent, according to management. Partner contribution continues to expand as OESX grows "feet on the street.”
CG maintains a 'Hold' on LSB Industries (NYSE: LXU) and notes: Favorable conditions for nitrogen-based fertilizer markets to continue. US-based Gulf (of Mexico) producers are low cost producers to the US due to low natural gas prices. Weather is the big wild card for agricultural chemicals business that LSB cannot control.
CG maintains a 'Hold' on Trex Co. (NYSE: TREX) and notes: Trex’s strategy is to reach 50% share (35% currently) of the composite wood market. The company is expanding Trex Transcend reach and launching new products: substructures, porch, trim, etc. Licensing partnerships should benefit revenues/profitability and also expand the brand.
Analyst Eric Prouty said, "Over the past two weeks, our Green Building Index fell 8.5% vs. a 6.3% drop in the S&P 500 Index. Since the start of the year, our Green Building Index is down 21% vs. -10.7% for the S&P 500 Index and -11.7% for the Nasdaq Comp. Index."
"Within our Green Building/Energy Efficiency coverage universe, nine companies made presentations and answered questions in the breakout sessions that followed. Below we highlight some takeaways from these presentations/discussions. Later, we take a look at the July architecture billings data from the American Institute of Architects and what it might mean for companies exposed to new construction trends."
Canaccord Genuity maintains a 'Buy' on Ameresco (Nasdaq: AMRC) and notes: During uncertain times, most companies/organizations are concerned with reducing operating budgets. This is actually beneficial for AMRC, which works with its customer base to reduce operating expenses both quickly and cost-effectively. Management noted that most of its customers have a specific need to upgrade HVAC, lighting, etc., so these expenditures are not necessarily discretionary in nature.
CG maintains a 'Buy' on Apogee Enterprises (Nasdaq: APOG) and notes: Apogee's business appears to be "off the bottom" and the company is seeing slow, gradual growth. Good news is that the nonres. market wasn't overbuilt, so there's not a huge overhang delaying new construction growth.
CG maintains a 'Buy' on ICF International (Nasdaq: ICFI) and notes: ICF addressed the question on everyone's mind: how can the company grow in this budget-tightening environment? ICF demonstrated it has outgrown (on an organic basis) federal discretionary and nondefense discretionary spending levels over the years by taking market share and expanding into non-government high-growth areas (energy efficiency, etc.).
CG maintains 'Buy' Jones Lang LaSalle (NYSE: JLL) and notes: JLL is currently not seeing any impact from recent market uncertainty. While headlines are scary, JLL reported its clients aren’t doing anything out of the ordinary. Overall growth dynamics remain good and management is not hearing of deal fall-out, but that won’t be apparent until future quarters are reported. The current situation does not “feel” like 2008...While the overall financial market is “running from risk,” the commercial real estate market hasn’t embraced risk following the 2008 downturn, so there’s nothing to “run from” at this point, according to JLL.
CG maintains a 'Speculative Buy' on Lime Energy (Nasdaq: LIME) and notes: Management explained in some detail Lime’s business value proposition: The company delivers “expertise, speed and innovation through proven methodologies, policy enablement and scalable solutions.” Importantly, 2011 marks Lime’s year to begin to scale its platform after previously undergoing acquisitions (2008), segment focus (2009), and improving the delivery process (2010).
CG maintains a 'Buy/Best Idea' on NCI Building Systems (NYSE: NCS) and notes: The company disclosed that July quarter bookings will be up 24% q/q and 42% y/y. Company termed it a "meaningful number". Spreads (margins on individual sales) are at near record levels (but obviously overall volumes remain low, impacting overall margins).
CG maintains a 'Buy' on Orion Energy Systems (Nasdaq: OESX)($5pt) and notes: Orion has manufacturing capacity of $250M in sales. Management discussed $300M of business in the pipeline – the expected conversion rate is 30-35 percent, according to management. Partner contribution continues to expand as OESX grows "feet on the street.”
CG maintains a 'Hold' on LSB Industries (NYSE: LXU) and notes: Favorable conditions for nitrogen-based fertilizer markets to continue. US-based Gulf (of Mexico) producers are low cost producers to the US due to low natural gas prices. Weather is the big wild card for agricultural chemicals business that LSB cannot control.
CG maintains a 'Hold' on Trex Co. (NYSE: TREX) and notes: Trex’s strategy is to reach 50% share (35% currently) of the composite wood market. The company is expanding Trex Transcend reach and launching new products: substructures, porch, trim, etc. Licensing partnerships should benefit revenues/profitability and also expand the brand.
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