STAMFORD, Conn. - Altus Power, Inc. (NYSE: AMPS), a leading provider of commercial-scale clean electric power, has expanded its New Jersey solar portfolio with the acquisition of an 8.5-megawatt (MW) solar array, the company announced today. This addition brings Altus Power's total New Jersey solar capacity to 185.5 MW.
The newly acquired ground-mounted solar project will sell its generated power to PJM, the local independent system operator, and will also produce Solar Renewable Energy Credits (SRECs). The site spans 63 acres, offering the company potential redevelopment opportunities to enhance long-term value.
CEO Gregg Felton expressed satisfaction with the expansion in New Jersey, a state recognized for its commitment to renewable energy. The project is anticipated to generate approximately 8,776,000 kilowatt-hours (kWh) over the next 12 months, which is equivalent to avoiding over 6,100 metric tons of carbon dioxide emissions annually.
Altus Power's clean energy portfolio extends across 25 states, serving over 450 enterprises focused on carbon reduction goals. The company is also a key player in the Community Solar sector, providing clean energy savings to more than 24,000 customers, including homeowners and renters across various income levels.
The Stamford-based company specializes in solar generation, energy storage, and charging infrastructure, offering comprehensive solutions to commercial, industrial, public sector, and Community Solar customers.
The press release also contains forward-looking statements regarding Altus Power's future prospects and strategies, which involve certain risks and uncertainties. These statements are based on management's current expectations and beliefs and are subject to a number of factors that could cause actual results to differ materially from those projected.
This expansion is part of Altus Power's ongoing efforts to grow its renewable energy footprint and support the transition to a more sustainable energy future. The information reported is based on a press release statement from Altus Power, Inc.
In other recent news, Altus Power, a solar power generation company, has witnessed a series of developments. The company reported a significant increase in Q1 revenue to $40.7 million and adjusted EBITDA of $19.7 million, emphasizing its commitment to expanding its commercial-scale solar generation assets.
Still, Altus Power's three-year targets, presented during its inaugural Analyst Day, fell short of market expectations, leading to a downgrade from Overweight to Neutral by JPMorgan.
Seaport Global Securities initiated coverage on Altus Power with a Buy rating, highlighting the company's unique market approach and potential for growth. B.Riley, while maintaining a Buy rating, revised its financial outlook for Altus Power, lowering the price target due to a more moderate growth trajectory than initially predicted.
Evercore ISI also revised its share price target for Altus Power while reaffirming an Outperform rating, acknowledging the company's potential to benefit from the growing domestic solar panel manufacturing.
These recent developments underscore Altus Power's strategic moves to generate free cash flow, support investment-grade debt ratings, and position the company as an attractive option for acquiring operating solar assets. The company's commitment to asset ownership and long-term sales agreements underpins its financial stability and attractiveness to investors.
InvestingPro Insights
As Altus Power, Inc. (NYSE: AMPS) continues to expand its solar capacity with strategic acquisitions, the company's financial health and market performance are pivotal to understanding its future prospects.
With a current market capitalization of $681.07 million, Altus Power is navigating the competitive landscape of the renewable energy sector. The company's gross profit margin stands impressively high at 79.22% for the last twelve months as of Q1 2024, underscoring its ability to manage production costs effectively while expanding its operations.
Despite not paying dividends, which is common for growth-focused companies in the renewable energy sector, Altus Power shows a strong revenue growth rate of 49.49% over the last twelve months as of Q1 2024. This growth is indicative of the company's increasing scale and market reach.
An important InvestingPro Tip to consider is the analysts' anticipation of sales growth in the current year, which aligns with the company's ongoing expansion efforts and could signal continued upward momentum.
Still, potential investors should be aware of the significant debt burden that Altus Power operates with, which may pose challenges in making interest payments. This is reflected in the company's negative P/E ratio of -88.28, suggesting that investors are currently valuing the company's future growth prospects over immediate profitability.
Moreover, the stock has experienced a considerable decline over the last six months, with a 35.84% drop in price total return, indicating market volatility and potential investor caution.
For those looking to delve deeper into Altus Power's financials and future outlook, InvestingPro offers additional insights and tips. Currently, there are 13 additional InvestingPro Tips available, which could provide valuable context for evaluating the company's performance and potential investment opportunities. Interested readers can access these tips at https://www.investing.com/pro/AMPS and may use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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