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Dutton Associates Announces Investment Opinion: Lime Energy Maintained at Strong Speculative Buy Rating By Dutton Associates

Posted on: Friday, 8 February 2008, 12:00 CST

Dutton Associates updates its coverage of Lime Energy (OTCBB:LMEG), maintaining its rating of Strong Speculative Buy and its target price of $17.50. The 12-page report by Dutton senior analyst Richard West, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.

Lime Energy is now one of the nation's leading energy efficiency technology and engineering companies. By efficiently reducing the amount of electricity use, the Company's customers are able to both save money and to become better corporate citizens through the reduction of unnecessary greenhouse gas emissions. The Company has two primary business segments focused on commercial, industrial, and office buildings. The Company's 156.4% revenue growth for the recent quarter and the 162.2% revenue growth for the nine months ended September 30, 2007, both on a comparable basis, are tangible evidence that the Company's operations are producing positive results. We believe that the Company has the potential to grow into a higher market valuation. While there are no exact peer companies for comparison, EnerNoc, Inc. (NasdaqGM: ENOC), an IPO at $26.00 per share in May 2007, is a company that develops and provides demand response and energy management solutions to commercial, institutional, and industrial customers. EnerNoc reported revenue of $47.0 million on a trailing 12-month basis and currently sells at a market capitalization over $840.0 million, a market cap to revenue ratio of 27.2x. Our target price for Lime Energy represents only a 3.4x market cap to 2008 revenue ratio.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs®, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. We received $84,000 from the Company for 12 quarterly Research Reports with coverage commencing on 9/10/2003. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.

Source: Business Wire

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