FERC Ruling May Not Benefit EnerNOC (ENOC), Comverge (COMV) As Expected
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Price: $7.65 --0%
Rating Summary:
1 Buy, 14 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 26 | New: 83
Rating Summary:
1 Buy, 14 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 26 | New: 83
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EnerNOC, Inc. (Nasdaq: ENOC) and Comverge (Nasdaq: COMV) are rocking higher today, following a ruling from the Federal Energy Regulatory Commission (FERC) that wholesale market operators should pay demand response at the same price that generators are paid.
FERC said, "This approach for compensating demand response resources helps to ensure the competitiveness of organized wholesale energy markets and remove barriers to the participation of demand response resources, thus ensuring just and reasonable wholesale rates."
Commenting on the decision, one Wedbush analyst told Bloomberg said that the reaction to the move is overdone. He said "net benefits test will significantly complicate implementation of demand response, expected positive impact will be "very far out" (possibly 2015)." The Wedbush analyst rates ENOC at Underperform, with an $11 price target.
On the other hand, an analyst from Raymond James said that the ruling with positively impact EnerNOC's pricing and revs. New markets, such as the Midwest, will now open to the corporation. Raymond James has the shares at Market Perform.
Finally, Canaccord Genuity said that the next catalyst for ENOC is May's PJM auction. He wouldn't see too much deviation from last year's auction, expect ENOC to maintain about a 40% market share or to possibly increase market share. Canaccord has EnerNOC at Buy, with a $40 price target.
ENOC has 13 analysts with a Buy, 12 with a Hold, and 1 recommending to Sell the stock.
Converge is also seeing some upside today. On the decision, CEO R. Blake Young said, "The new FERC rule is recognition of the critical role that demand response plays in our nation's energy mix. By leveling the playing field and creating price parity between demand response resources and electricity generation, the FERC has sent a clear message on the high value of energy efficiency programs and technologies. Additionally, our incumbent position and established history of successfully delivering these complex solutions to utility and commercial and industrial customers uniquely positions Comverge to deliver the consumer benefit this expanded rule intends."
EnerNOC shares are up 6.6% on the day, and Comverge is also up 6.1%.
FERC said, "This approach for compensating demand response resources helps to ensure the competitiveness of organized wholesale energy markets and remove barriers to the participation of demand response resources, thus ensuring just and reasonable wholesale rates."
Commenting on the decision, one Wedbush analyst told Bloomberg said that the reaction to the move is overdone. He said "net benefits test will significantly complicate implementation of demand response, expected positive impact will be "very far out" (possibly 2015)." The Wedbush analyst rates ENOC at Underperform, with an $11 price target.
On the other hand, an analyst from Raymond James said that the ruling with positively impact EnerNOC's pricing and revs. New markets, such as the Midwest, will now open to the corporation. Raymond James has the shares at Market Perform.
Finally, Canaccord Genuity said that the next catalyst for ENOC is May's PJM auction. He wouldn't see too much deviation from last year's auction, expect ENOC to maintain about a 40% market share or to possibly increase market share. Canaccord has EnerNOC at Buy, with a $40 price target.
ENOC has 13 analysts with a Buy, 12 with a Hold, and 1 recommending to Sell the stock.
Converge is also seeing some upside today. On the decision, CEO R. Blake Young said, "The new FERC rule is recognition of the critical role that demand response plays in our nation's energy mix. By leveling the playing field and creating price parity between demand response resources and electricity generation, the FERC has sent a clear message on the high value of energy efficiency programs and technologies. Additionally, our incumbent position and established history of successfully delivering these complex solutions to utility and commercial and industrial customers uniquely positions Comverge to deliver the consumer benefit this expanded rule intends."
EnerNOC shares are up 6.6% on the day, and Comverge is also up 6.1%.
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