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Wednesday, 11/26/2014 2:24:30 AM

Wednesday, November 26, 2014 2:24:30 AM

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Global Hunter Securities initiated coverage on Vertex Energy (NASDAQ: VTNR) with a Spec. Buy rating and a price target of $8.00. Analyst Walt Liptak likes the company's growth story.

"We believe VTNR's recent strategic M&A actions should help the company grow its re-refining capacity and generate 2015 EBITDA growth of 100%+. In our view, VTNR has future EBITDA growth opportunities as a strategic consolidator of the used motor oil (UMO) collector market. VTNR also stands to benefit from changing regulations in the marine fuel market."

"Our $8 price target is based on a 2015E P/E multiple of 22x and a 1.1x PEG ratio, which we believe is an appropriate growth multiple as VTNR ramps its new capacity. Additionally, our price target valuation is below the current P/E multiple for comparable companies HCCI and CLH. The company's goal is to achieve $40MM $50MM of annualized EBITDA, which equates to a long-term EV/EBITDA multiple of 2.0x to 2.8x," he added.

For an analyst ratings summary and ratings history on Vertex Energy click here. For more ratings news on Vertex Energy click here.

Shares of Vertex Energy closed at $3.94 yesterday.
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