ABM to Build Solar Plant at Cornell University - Analyst Blog
March 21 2014 - 12:00PM
Zacks
The energy business arm of
ABM Industries Inc. (ABM) has recently started
construction on a 2 MW solar array on Cornell University’s campus
in Ithaca, NY. The investment seems to have impressed investors as
share prices have marginally increased to $28.78 as on Mar 20.
The project will be financed and owned by ABM’s joint venture
partner Building Energy in partnership with developer Distributed
Sun, LLC. ABM will provide Engineering, Procurement and
Construction (EPC) and Operations & Maintenance (O&M)
services for this project.
The deal is Ivy League university’s first large solar endeavor. ABM
is focusing on developing clean renewable energy project, minimize
client’s utility costs and increase the overall power reliability.
The solar array is expected to save 730 metric tons of carbon
dioxide annually. Per the agreement, the 6,500+ panel Lansing solar
array will provide low-cost energy rates to Cornell University over
a period of 30 years and is line with its carbon reduction goals.
The system is expected to generate over 2.2 million kilowatt hours
(kWh) annually. A portion of the plant will also be used by
students to view solar monitoring software for 10 panels.
With about $13 billion worth of solar project construction in 2013,
ABM envisions a tremendous growth opportunity in the solar market.
The market is expected to grow at a compounded annual growth rate
(CAGR) of 28% by the end of 2016 and ABM is well positioned to take
advantage of this growing market to augment its revenues.
ABM provides engineering,
janitorial, parking, and security services to commercial,
industrial, institutional, and retail facilities. The company has
developed a platform to deliver an end-to-end service model to its
clients by realigning operational structure to an on-site, mobile
and on-demand market-based structure.
The company further expects to
extend its global footprint as well as strengthen its position in
the existing markets through inorganic and organic growth across
industry verticals.
ABM currently holds a Zacks Rank #2
(Buy). Other stocks in the industry that look promising include
Rollins Inc. (ROL), Huron Consulting Group
Inc. (HURN) and Accenture plc (ACN), each
carrying a Zacks Rank #2 (Buy).
ABM INDUSTRIES (ABM): Free Stock Analysis Report
ACCENTURE PLC (ACN): Free Stock Analysis Report
HURON CONSLT GP (HURN): Free Stock Analysis Report
ROLLINS INC (ROL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Huron Consulting (NASDAQ:HURN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Huron Consulting (NASDAQ:HURN)
Historical Stock Chart
From Sep 2023 to Sep 2024