Vertex Energy Inc (VTNR)

[NathanH]

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.

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Shares of Vertex Energy closed at $3.94 yesterday.