What Happened?
Shares of energy and renewable energy projects company Ameresco (NYSE: AMRC) jumped 5.4% in the morning session after the company announced a partnership with the U.S. Navy to develop a 100 MW AI-optimized data center and critical energy infrastructure.
The project will be located at Naval Air Station (NAS) Lemoore in California. Ameresco is collaborating with data center specialist CyrusOne on the facility, which will feature dedicated onsite energy generation to support advanced AI workloads. The development is also set to include a new microgrid with engine generators and control systems, aimed at enhancing energy resilience across the entire naval installation. Ameresco noted that while agreements are still being finalized, it expects this project to become one of its largest energy assets. The initiative is seen as a significant move to advance U.S. leadership in artificial intelligence and energy security.
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What Is The Market Telling Us
Ameresco’s shares are extremely volatile and have had 56 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 7 days ago when the stock dropped 0.1% on the news that 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.
Ameresco is up 2.2% since the beginning of the year, but at $25.69 per share, it is still trading 33.8% 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 $852.36.
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