Canaccord Genuity initiates coverage on eEnergy at 'buy'

Analysts at Canaccord Genuity initiated coverage on energy services provider eEnergy with a 'buy' rating and 15.0p target price on Thursday, valuing the group squarely in the middle of its utility service peers in the UK.

Built up through three key acquisitions over the past two years, Canaccord Genuity said eEnergy had "evolved" its energy efficiency offering with the historic lighting-as-a-service providing the largest element of its energy services offering.

However, Canaccord said the group was now positioned with multi-product offerings, and stated the addition of energy management capabilities offered procurement along with "extensive compliance and consultancy services" focussed on the public sector, charities, and commercial and industrial customers.

"Given current utility market trends, we expect organic growth in excess of 20% per year for the foreseeable future. In addition, it is currently expanding into EV charging and solar panels, provided to customers with third-party financing," said Canaccord.

The Canadian bank noted that eEnergy's focus over the last six months will be on the integration of previous acquisitions to achieve "a strong start to the trading year".

Canaccord also highlighted that as a group, eEnergy remains acquisitive, with expected targeted acquisitions going forward.

Reporting by Iain Gilbert at Sharecast.com