In a report released today, Vikram Bagri from Citi maintained a Buy rating on Altus Power (AMPS – Research Report), with a price target of $7.00.
Vikram Bagri has given his Buy rating due to a combination of factors including the company’s solid growth plan and expectations for future performance. Despite Altus Power missing its fourth-quarter earnings per share and guiding fiscal year 2024 revenues and adjusted EBITDA below consensus, Bagri sees positive aspects that underpin the Buy rating. He highlights that Altus Power has reiterated it does not require additional equity to execute its 2024 growth plan, and the construction megawatts added in FY24 are projected to be above what was added in FY23. Furthermore, a forthcoming Investor Day is expected to provide clarity and assist investors in modeling the business more accurately.
On the portfolio front, Altus Power has grown significantly, with its total portfolio reaching approximately 896 megawatts by the end of the fourth quarter, up from 721 megawatts in the previous quarter. This growth is a result of both construction asset additions and mergers and acquisitions. Bagri’s outlook also incorporates the updates made to the financial model following the fourth-quarter results and the guidance for FY24. The report indicates an expected share price return of 17.8%, which suggests a strong upside potential for Altus Power’s stock, thus supporting the Buy recommendation.
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Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMPS in relation to earlier this year.
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Altus Power (AMPS) Company Description:
CBRE Acquisition Holdings Inc is a blank check company.
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