Blackstone-Backed Altus Power Is a Good Investment After CBAH Merger

Investors are trying to assess Altus Power's (AMPS) stock forecast after the CBAH merger to see if it could be a good long-term investment.

Ruchi Gupta - Author

Dec. 13 2021, Published 12:57 p.m. ET

Solar panel and Altus Power logo
Source: Altus Power Twitter, Unplash

Recently, Altus Power (AMPS) went public through a SPAC merger in a deal backed by Blackstone. CBRE Acquisition (CBAH), a blank-check company sponsored by CBRE Group, raised more than $400 million through its IPO and arranged for an additional $275 million in PIPE deals to take Altus public. What’s Altus Power's stock forecast after the CBAH merger?

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Altus builds and operates solar energy projects for commercial customers. The company has developed more than 350 megawatts and it continues to expand its capacity as the demand accelerates.

Altus Power targets a segment of the solar power market that other providers have tried to avoid because of its challenges. However, the company is confident it will succeed where others might have struggled thanks to the strategic partnerships it has forged with real-estate powerhouses Blackstone and CBRE Group.

Altus installs solar panels on rooftops and in parking lots of commercial buildings. The new partnerships give it access to a large base of customers seeking clean electricity.

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Solar panels
Source: Altus Power Twitter

Is Altus Power a good investment?

Amid growing climate change concerns, businesses across industries are working to reduce their carbon emissions. In transportation, businesses are shifting from gas-powered fleets to electric vehicles. Companies including Tesla, Lucid, and Amazon-backed Rivian will supply the vehicle.

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In powering office buildings and factories, many businesses are accelerating investments in clean electricity from sources like solar and wind. In addition to helping commercial customers transform their buildings into clean power plants, Altus also offers renewable energy solutions. The company has a huge growth opportunity considering that commercial and industrial customers are forecast to spend $6 trillion on electricity through 2050.

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What's Altus Power's stock forecast after the CBAH merger?

Investors are eager to know how high AMPS stock can go after the CBAH merger considering that the stock has continued to trade below its $10 IPO price. Given the global shift to clean energy, the market opportunity for Altus Power is there. The value of Altus Power stock will largely depend on how management executes the plan.

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The company is run by co-CEOs Lars Norell and Gregg Felton. Norell said that Altus has the resources and expertise to succeed. The company recently signed a deal with oil major Shell. Through a program, the companies will work together to help businesses cut their carbon emissions and lower energy costs.

Altus has received almost $640 million in cash as part of the SPAC merger. The company plans to use the money to fuel its growth. Altus generated revenue of $45 million in 2020 and it forecasts that revenue will grow to $336 million by 2024.


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