BUY RATING AND TARGET 22Analysts at Lazard Capital Markets maintain their "buy" rating on Comverge Inc
(COMV), while reducing their estimates for the company. The target price has been reduced from $37 to $22.
In a research note published this morning, the analysts mention that the company has reported its 4Q07 earnings short of expectations due to higher-than-expected non-cash SG&A costs. Comverge’s growth prospects are expected to be driven going forward by the company’s ability to build long-term VPC contracts and maintain a well-diversified model of residential and C&I demand response solutions, the analysts add. The EPS estimates for 2008 and 2009 have been reduced from $0.10 to -$0.50 and from $0.50 to $0.02, respectively, reflecting higher non-cash stock comps and the expectation of weak near-term sales.