Raymond James Analyst Sticking His Neck Out: Upgrades EnerNOC Shares as Price Continues to Decline

Shares of EnerNOC ENOC are continuing lower Wednesday morning following a nearly 16 percent decline on Tuesday amid concerns related to the a recent PJM auction. The stock was downgraded at Credit Suisse on Tuesday and was again downgraded at Pacific Crest Wednesday morning. Taking the other side of the trade, an analyst at Raymond James upgraded shares of EnerNOC from Outperform to Strong Buy this morning. The firm's Pavel Molchanov maintains a $20 price target on shares of EnerNOC. Molchanov believes the market is overreacting to the downside. The analyst is modeling for EnerNOC to continuing beating quarterly results and raising guidance heading into 2014. Molchanov noted EnerNOC has one of the highest free cash flow yields in the Clean Tech sector at 16 percent; he also believes M&A is 'certainly a possibility." EnerNOC shares last traded at $14.42, down nearly 4 percent from Tuesday's close.