Renewable Energy +12% on lighter than expected loss, Canaccord upgrade
Renewable Energy (REGI +11.8%) enjoys strong gains after posting a smaller than expected Q1 loss and a 40% Y/Y revenue increase beats by $0.09.
REGI says it anticipates seasonally higher demand in the coming months, and its biorefinery fleet is is running at high utilization levels.
Canaccord upgrades shares to Buy from Hold with a $16 price target, hiked from $11, after three years of shares being relatively range-bound due to the weak oil and commodity macro environment coupled with platform repositioning and repowering efforts.
The firm says it now views the risk/reward as much more compelling, given a combination of a more favorable biodiesel macro because of fair trade focus on imports and a modest fat/oil price complex, an enhanced platform (methyl ester, renewable hydrocarbon and geography) and solid management execution supportive of a more highly valued enterprise.