Shares of solar company Altus Power Inc. (NYSE:AMPS) are up over 35% over the past three months, thanks in part to its recent growth and acquisitions. That growth and strong federal policies such as the Solar Investment Tax Credit, a rapidly declining cost structure, and increasing public demand for clean electricity have analysts anticipating the positive ride to continue for AMPS stock.
Company and Market Dynamics Driving AMPS Stock
Stamford, Connecticut-based Altus Power, Inc. is a commercial-scale provider of clean electric power for industrial, commercial, public sector, and community solar customers. It provides end-to-end solutions by originating, developing, owning, and operating locally-sited solar generation, energy storage, and charging infrastructure.
Market dynamics for solar have been positive for some time. The cost to install solar has dropped by more than 40% over the past ten years, powering the industry’s expansion into new markets and driving the deployment of thousands of systems nationwide. This expansion has helped the industry experience an average annual growth rate of 24%.
Altus Power has taken steps to keep pace.
Recently, the company announced the successful closing of a secured credit facility, with a principal loan amount of $100 million provided by Goldman Sachs Asset Management and a subsidiary of the Canada Pension Plan Investment Board.
The proceeds from the credit facility will help support Atlus Power’s ongoing expansion. Growth initiatives, like the acquisition of Unico Solar in December and the successful acquisition of about 84 megawatts of solar assets from Vitol Solar I LLC at the end of January, are expected to boost the company’s growth prospects.
AMPS’ acquisition strategy, strong relationships with channel partners, and expanding national footprint have analysts bullish on the stock.
In a recent note, B. Riley analyst Christopher Souther raised the price target on Altus Power to $10 from $8 while reiterating a Buy rating on the shares, citing the dynamics of the solar market playing into the company’s favor in the foreseeable future.
Is Altus Power a Buy?
Altus Power stock is currently rated a Strong Buy based on the bullish reviews from four Wall Street analysts, who have given a rating in the past three months. Their average price target is $9, with a high forecast of $10 and a low forecast of $7. The average price target represents a 25.52% upside from current levels.
Final Thoughts
As the world rides the wave of clean energy, the industry and market dynamics are steering towards a more sustainable future, presenting solar power providers like Altus Power with opportunities that could reward shareholders of its stock. Consensus analysts’ opinion on Altus Power is bullish, given AMPS’ strong foothold in the rapidly expanding solar energy market, strategic acquisitions amplifying its capabilities, and strong institutional support.
