J.P. Morgan Downgrading EnerNOC

J.P. Morgan Chase & Co. is downgrading shares of EnerNOC Inc.

to Neutral from Overweight, and is lowering its price target to $22.50 from $27. In a note to clients, J.P. Morgan Chase & Co. writes, "We are downgrading ENOC to Neutral from Overweight following disappointing 2Q results and revised guidance that is well below expectations. The company reiterated its FY13 guidance, but FY11 and FY12 guidance disappointed owing to the impact to the sales cycle from the PJM overpayment issue as well as increased operating investments required from new contracts and acquisitions. We continue to believe ENOC is well positioned long term, with above-average visibility into FY13; however, we believe there are risks to EPS estimates in the near term and the stock will likely perform in line with the mean of our coverage over the next 12 months." Shares of ENOC lost 90 cents yesterday to close at $14.36, a loss of 5.9%.