What Happened?
Shares of energy and renewable energy projects company Ameresco (NYSE: AMRC) fell 0.1% in the morning session after the investment firm Baird upgraded the stock's rating to 'Outperform' from 'Neutral' and increased its price target. Analyst Ben Kallo raised the price target for Ameresco from $23.00 to $35.00, representing a significant 52% increase. Such a substantial upgrade from an investment firm typically signals strong confidence in a company's future performance and growth prospects.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Ameresco? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Ameresco’s shares are extremely volatile and have had 57 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 19 days ago when the stock dropped 4.3% on the news that an unexpectedly sharp rise in wholesale inflation fueled concerns about rising costs and their impact on corporate profits. The primary catalyst was the July 2025 Producer Price Index (PPI), a measure of inflation at the wholesale level, which jumped 0.9% against forecasts of a 0.2% rise. This represents the most significant monthly increase in over three years, pointing to mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, as persistent inflation may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.
Ameresco is up 0.3% since the beginning of the year, but at $25.21 per share, it is still trading 35% below its 52-week high of $38.78 from September 2024. Investors who bought $1,000 worth of Ameresco’s shares 5 years ago would now be looking at an investment worth $804.92.
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