Selected stock price target news of the day - November 7th, 2023

By: Matthew Otto

Ameresco Q3 Revenue and EPS Miss Analyst Expectations; Adjusts Full-Year Guidance Due to Industry Challenges

Ameresco reported a third-quarter EPS of $0.40, which was $0.06 less than the analyst estimate. The company’s revenue for the quarter was $335.1 million, which did not meet the expected $388.81 million. The guidance provided for the full year 2023 shows an anticipated EPS of $1.15 to $1.25, in contrast to the analyst consensus of $1.81, and revenue forecasts of $1.32 to $1.37 billion, compared to the expected $1.53 billion.

The report indicates that the company experienced delays in project revenue due to supply chain delays and administrative bottlenecks. There were also unexpected downtimes at some of Ameresco’s Energy Asset plants, which influenced the financial results. Nonetheless, the company’s total project backlog increased by 14% sequentially due to $708 million in new awards.

For the third quarter

The company’s revenue was derived from different business segments: Projects ($242.7 million), Energy Assets ($44.3 million), Operations & Maintenance (O&M) ($22.8 million), and other sources ($25.4 million). The company’s net income attributable to common shareholders was $21.3 million with an adjusted EBITDA of $43.3 million.

Ameresco’s CEO noted the strength in the company’s market positioning and the high levels of project activity, with year-to-date new awards amounting to $1.7 billion. The company’s assets in development increased by over 50 MW in the third quarter, and more than $500 million in financing commitments was secured.

Looking ahead, Ameresco adjusted its guidance due to ongoing industry challenges, which include project delays and material shortages that are expected to continue into 2024. The company is now aiming to place between 120 and 130 MWe of energy assets in service for the entire year of 2023.

Finally, regarding specific projects, two of the three Southern California Edison projects are in commissioning and are slated for completion by the end of 2023. Due to delays caused by heavy rainfall in California, the third project’s completion is expected in the first half of 2024. Consequently, Ameresco is seeking an extension on the maturity date for the remaining principal amount of a term loan.

Wall Street Removes Approval

William Blair analyst Tim Mulrooney revises from Outperform to Market Perform.
Oppenheimer’s Noah Kaye adjusts his stance from Outperform to Perform.

Which Analyst has the best track record to show on AMRC?

Analyst Christopher Souther (B.RILEY) has currently the highest performing score on AMRC with 8/10 (80%) price target fulfillment ratio. His price targets carry on average an $9.4 (20.27%) potential upside. Ameresco stock price reaches these price targets on average within 62 days.

Compass, Inc. Matches Q3 Earnings Estimates; Revenue Exceeds Expectations

Compass, Inc. reported third-quarter earnings per share of ($0.08), aligning with analyst projections. Third-quarter revenue was $1.34 billion, surpassing the anticipated $1.31 billion. Year-over-year, revenue saw a 10% decrease amidst a broader market transaction decline of 12% due to economic conditions. The GAAP net loss for the quarter was $39 million, showing an improvement from the previous year’s $154 million net loss. The net loss includes non-cash expenses such as stock-based compensation of $38 million and depreciation and amortization of $21 million.

Adjusted EBITDA for the third quarter was $22 million, which is an advancement from the previous year’s negative $42 million, even as revenue fell by 10% due to economic factors. Operating cash flow and free cash flow for the quarter were reported at $15 million and $12 million, respectively, considering capital expenditures. The company’s cash and cash equivalents at the end of the third quarter stood at $220 million, with no draw from its revolving credit facility.

Operationally, Compass saw a national market share increase to 4.4%, a 26 basis-point rise from the previous year. The average number of principal agents grew by 4%, and agent retention rates were at their second-highest since the company went public. Transaction numbers decreased by 12% year-over-year, which was less than the total U.S. residential real estate market decline of 20%.

For the fourth quarter, Compass forecasts revenue between $1.1 billion to $1.2 billion and an adjusted EBITDA between negative $35 million to negative $20 million. For the full year, non-GAAP operating expenses are projected to be in the range of $850 million to $950 million.

Wall Street Adjust Their Price targets Lower

Goldman Sachs analyst Michael Ng Maintains Buy Rating, Price Target Adjusted to $3.5
Morgan Stanley analyst Brian Nowak Holds Equal-Weight, Price Target Reduced to $2.25
Needham analyst Bernie McTernan Continues with a Buy Rating, Price Target Decreased to $3
UBS analyst Lloyd Walmsley lowers his price target to $2.25

Which Analyst has the best track record to show on COMP?

Analyst Brian Nowak (MORGAN STANLEY) has currently the highest performing score on COMP with 4/5 (80%) price target fulfillment ratio. His price targets carry on average an $0.46 (13.46%) potential upside. Comp, Inc stock price reaches these price targets on average within 27 days.

Mirati Therapeutics Faces Decreased License Revenue and Net Loss in Q3 2023 Despite Pipeline Progress

Mirati Therapeutics has disclosed its financial outcomes for the third quarter of 2023 and provided updates on its corporate activities. Key highlights include the progress of its oncology-focused pipeline and the ongoing introduction of KRAZATI®. The company’s CEO mentioned the anticipated acquisition by Bristol Myers Squibb, aimed at enhancing the potential of Mirati’s therapies.

The company has shared various updates on its pipeline:

Adagrasib received conditional marketing authorization from the UK’s MHRA for a specific lung cancer treatment.
Data from various phases of clinical studies were released regarding the efficacy of adagrasib for lung cancer treatment.
Adagrasib has been incorporated into the NCCN Guidelines for specific cancer types.
Enrollment has been completed for a Phase 3 study of adagrasib plus cetuximab for colorectal cancer, and enrollment continues for a separate Phase 3 study in lung cancer.
The EMA’s CHMP is re-examining the Conditional Marketing Authorisation for adagrasib.

Additional molecules, MRTX1719 and MRTX1133, continue through clinical study phases, with ongoing patient enrollment.

Mirati has also announced a merger agreement with Bristol Myers Squibb, valuing the company at $58 per share in cash, with additional potential value through a Contingent Value Right (CVR).

The third quarter financial results revealed:

Holdings in cash, equivalents, and short-term investments of approximately $976.4 million.
Net revenue from KRAZATI of $16.4 million for Q3 and $36.1 million for the nine months ended September 30, 2023.
Zero revenue from licenses and collaborations for Q3 but a total of $1.2 million for the nine months ended September 30, 2023.
A decrease in research and development expenses compared to the same periods in 2022, reflecting reduced costs in clinical development for certain programs.
Increase in selling, general, and administrative expenses due to higher headcount-related costs and marketing efforts for KRAZATI®.
A net loss of $161.9 million for Q3 2023, which shows a slight reduction from the net loss reported in the same period in 2022.

Mirati Therapeutics Downgraded by Leerink and Stifel, Price Targets Adjusted Lower

Leerink Partners analyst Andrew Berens has downgraded Mirati Therapeutics to Market Perform and reduced the price target to $58 from $78.
Stifel analyst Benjamin Burnett has downgraded Mirati to Hold from Buy and decreased the price target to $59 from $83.

Which Analyst has the best track record to show on MRTX?

Analyst Silvan Tuerkcan (JMP) has currently the highest performing score on MTRX with a 7/7 (100%) price target fulfillment ratio. His price targets carry on average an $13.56 (28.41%) potential upside. Mirati Therapeutics stock price reaches these price targets on average within 101 days.