{
  "id": 18280193,
  "title": "B.Riley cuts Energy Recovery stock price target on megaproject weakness",
  "url": "https://urgent.news/2026/11/05/b-riley-cuts-energy-recovery-stock-price-target-on-megaproject",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-05T09:10:55.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/briley-cuts-energy-recovery-stock-price-target-on-megaproject-weakness-93CH-5002669"
  },
  "original_language": "en",
  "account": "B.Riley has reduced its price target for Energy Recovery Inc. (ERII) stock to $7.00 from $8.00, while keeping a Neutral rating. The shares are currently trading at $7.17, marking a 58% decline over the past year, although analysts believe the stock is undervalued at its current level. In Q3, the company reported revenue of $11.2 million, falling short of both the company's own estimate of $19.1 million and the market's expectation of $16.1 million. Megaproject revenue witnessed a steep 95% drop year-over-year, falling to $0.9 million, due to ongoing conflicts in Iran. Despite this, Energy Recovery signed around $30 million in new megaproject contracts in the last 30 days, bringing the total backlog above $60 million. The fourth-quarter backlog includes $17 million in megaprojects and $10 million in OEM and Aftermarket business. The company has visibility on at least $50 million of megaproject revenue in 2027 from signed contracts and those under negotiation. Gross margin in Q3 dropped to 37.5% from 64.2% a year ago, attributable to lower volume. Over the past year, the company has maintained a robust gross profit margin of 65%, showing that the margin compression in Q3 was temporary. At the end of the quarter, Energy Recovery had $85.6 million in cash and equivalents and no debt following a share buyback of $2.4 million. Analysts note that management has been aggressively repurchasing shares, with a current ratio of 8.05 reflecting strong liquidity. ERII has repurchased $108.5 million of stock since Q4 2024 and has $21.3 million left under its current authorization. This price target adjustment reflects 15 times the company's revised 2027 EBITDA estimate of $17.6 million. More detailed insights into Energy Recovery’s financial health and growth prospects are available in the comprehensive Pro Research Report on InvestingPro, which includes 10 additional ProTips, Fair Value estimates, and detailed financial metrics.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}