EnerNOC shares fall after downgrade

Shares of EnerNOC fall a day after rising 25 pct. as Raymond James analyst cuts rating

Associated Press

NEW YORK (AP) -- Shares of energy services company EnerNOC Inc. fell Wednesday, giving up some of the hefty gains posted the day before, after a Raymond James analyst downgraded the stock citing the recent run up in its price.

THE SPARK: Pavel Molchanov cut his rating to "Market Perform" from "Outperform," noting that the shares surged 25 percent on Tuesday, leaving investors who buy now little in the way of potential gains.

THE BIG PICTURE: The Environmental Protection Agency has been drafting rules that will limit how long diesel generators can run without special environmental safeguards. The EPA had been widely expected to limit them to 15 hours per year, which would have hurt EnerNOC's business.

Instead, an EPA rule signed on Monday stuck with earlier language that allows the generators to run for 100 hours per year.

THE ANALYSIS: "While fully recognizing that we may be getting a bit too 'cute' with this rating change, we think a move to the sidelines for the time being makes sense after the recent gains," Molchanov wrote in a note to investors.

THE SHARES: Down 54 cents, or 3.4 percent, to $15.22 in afternoon trading, after dropping as low as $14.40 earlier in the session. The stock has risen about 28 percent since the beginning of the year. Over the past 52 weeks, the company's shares have traded between $5.41 and $15.89.

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