Why Did Ameresco Plunge 11.94%? UBS Downgrade Sparks Concern

On April 11, 2025, Ameresco's stock experienced a significant drop of 11.94% in pre-market trading, reflecting a challenging period for the company.

Analysts from UBS have downgraded Ameresco from a "buy" rating to a "sell" rating, significantly reducing the price target from $37.00 to $8.00. This move was driven by concerns over the company's performance and market conditions.

Ameresco has secured a substantial $11 million design-build contract with Reed College for comprehensive mechanical, electrical, and seismic upgrades to the college's boiler plant. This project is part of a larger initiative that includes a $2.3 million infrastructure design contract and a $1.8 million lighting upgrade, bringing the total ongoing work value to over $15 million. The partnership builds upon a previous $5.4 million campus-wide efficiency project completed a decade ago, which generated over $250,000 in annual energy cost savings. The current upgrades are aligned with Reed College's master plan to fully decarbonize the campus and enhance energy efficiency. The comprehensive project demonstrates Ameresco's continued commitment to providing sustainable energy solutions while strengthening its long-term relationship with Reed College. The initiative aims to improve campus infrastructure, reduce environmental impact, and ensure safe and comfortable learning environments.