Wedbush Reiterates Underperform, $5 Target on EnerNOC
Wedbush maintains its Underperform rating and $5 target on EnerNOC (NASDAQ: ENOC) as the company must buy power at auction following acceptance by Ferc of a double counting mitigation mechanism.
Wedbush says, "Friday after market close FERC released the Order accepting PJM's Mitigation mechanism effective November 7, 2011, with certain minor conditions. The Order requires that within 15 days PJM submit an explanation detailing why a Demand Response supplier should be eligible to Receive Alternative Transition Credits on the condition their losses exceed the original BRA auction prices. ...This Order effectively opens the Third Incremental Auction today, February 27, where EnerNOC is now required to bid at auction to cover Double Counted megawatts scheduled for delivery during the 2012 season."
ENOC closed at $9.66 a share on Friday.
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