Morgan Stanley Initiates ENOC At Equal-Weight

Morgan Stanley initiates coverage on demand response leader EnerNOC, Inc. ENOC with an Equal-weight rating as near-term risks keep us on the sidelines. “EnerNOC is a market leader with over 20% share, a first-class reputation, strong balance sheet, and exceptional expected EPS growth of 90% per year from 2011-13,” Morgan Stanley writes. “Our $45 bull case offers 80% upside potential if electricity demand grows faster than expected and/or coal plant retirements accelerate, both of which would increase the need for EnerNOC's services. Wide reserve margins are the biggest issue, with additional uncertainty from PJM.” EnerNOC currently trades at $25.20.