Bank of America Merrill Lynch Underperform on EnerNOC
Bank of America Merrill Lynch is out with a research report on EnerNOC Inc. (NASDAQ: ENOC) and it has an Underperform rating and a $12 price target on shares.
In a note to clients, Bank of America Merrill Lynch writes, "The FERC issued its ruling Nov 1 regarding “double counting,” mostly supporting PJM's position on use of the Peak Load Contribution as the measurement standard for determining DR load reduction. Although EnerNOC “lost” the decision and may need to find additional megawatts to cover previous commitments, the FERC did tell PJM to “incorporate an interim mechanism that accounts for commitments previously made by CSPs” through the 2014-15 auction. We should have a sense in early-2012 whether EnerNOC will need to find additional customers. The real risk in our view is that these customers result in lower splits, meaning less gross profit for EnerNOC."
Shares of ENOC are off 50 cents to $9.65, a loss of 4.93%.
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