UPDATE 1-EnerNOC soars 24 pct on better-than-expected result

(Adds CEO comments, updates share activity)

LOS ANGELES, May 8 (Reuters) - Shares of EnerNOC Inc (ENOC.O: Quote, Profile, Research) soared as much as 24 percent on Thursday, a day after it reported a narrower-than-expected quarterly loss due to cost controls and strong demand for its energy management services.

The company, which helps utilities and grid operators curb and control peak electricity demand, also backed its 2008 revenue outlook and said it still expects 2010 to be its first full year of profitability.

"We made some very strategic investments at the end of last year, and we're seeing those investments pay off," EnerNOC Chief Executive Tim Healy said in an interview, referring to the company's expansion into Texas and Ontario, as well as investments in research and development.

EnerNOC shares jumped to $16.95, their highest level since the company reported a larger-than-expected fourth-quarter loss on Feb. 27, before settling back to $15.67. In afternoon trading, EnerNOC was among the top 20 percentage gainers on the Nasdaq.

Jefferies & Co analyst Paul Clegg raised his price target on the company's shares to $14 from $12, citing pricing improvements and higher gross margin expectations. He maintained his "hold" rating on the stock.

Boston-based EnerNOC went public a year ago, and its stock enjoyed a sharp run-up last year on increased investor demand for alternative energy stocks. This year, however, the company's shares have taken a beating and are still well below their initial public offering price of $26.

Late on Wednesday, EnerNOC posted a first-quarter net loss of $11 million, or 57 cents per share, compared with a loss of $3.8 million, or 91 cents a share, a year ago. Analysts had expected a loss of 59 cents per share, according to Reuters Estimates.

As of March 31, EnerNOC had 1,502 megawatts (MW) under management, marking an increase of 390 MW in the first quarter. That growth was helped by expansion into new service territories such as Canada and Texas.