UPDATE: Piper Jaffray Reiterates Overweight Rating, Raises PT on EnerNOC

In a report published Wednesday, Piper Jaffray & Co. reiterated its Overweight rating on EnerNOC

, and raised its price target from $13.00 to $15.00. Piper Jaffray noted, “We reiterate our OW rating on ENOC and highlight it as one of our top ideas in the smart grid sector. ENOC is the leading provider of demand response services with 8.3GW of capacity, in a market with 98.5GW of potential by 2015 according to our estimates. ENOC shares have rallied in recent weeks, following higher FY13 EPS guidance of $0.15-$0.75 (-$0.25-$0.50 previously) on the same guided revenue of $350-$400m. We believe the higher guidance helped lift the regulatory overhang in the PJM market. We believe further upside remains, as ENOC enters the seasonally strong 3Q12 quarter, and we raise our PT to $15 ($13 previously). We arrive at our new target by removing the 20% valuation discount, due to improved business visibility. Furthermore, we note recent smart grid takeout multiples imply a valuation of $29-$35/share.” EnerNOC closed on Tuesday at $11.90.