UPDATE: Lake Street Capital Markets Reiterates Buy Rating, Raises PT on PowerSecure International Following Announced New Orders

In a report published Friday, Lake Street Capital Markets analyst Robert D. Brown reiterated a Buy rating on PowerSecure International POWR, and raised the price target from $17.00 to $21.00. In the report, Lake Street Capital Markets noted, “PowerSecure now has the largest backlog in its history and is seeing good order flow across all of its business segments. The recently-announced orders mean nearly all of this year's and 15% of next year's revenue estimate is now in backlog or visible. With the announced new orders, PowerSecure should be able to grow revenue at a 23% CAGR organically (‘09 to '14) and is well on its path to meet its goal of $300 million in revenue. We believe this will result in operating leverage going forward and estimate operating margins can increase from 1.2% in 2012 to 9.1% in 2014. Further, we are gaining confidence that the company can ultimately reach management's goal of mid-teens operating margin and $300 million in revenue, which implies EPS of $1.30-$1.50.” PowerSecure International closed on Thursday at $14.77.