Gold prices slip after rallying on Powell rate cut talk
On Friday, Texas Capital Securities maintained a Buy rating on Gevo , Inc. (NASDAQ:GEVO) with a steady price target of $4.50, representing significant upside potential from the current price of $1.25. According to InvestingPro data, the stock has shown strong momentum with a 72% gain over the past six months, despite recent volatility. Analyst Derrick Whitfield provided positive remarks following Gevo’s business update, which included financial forecasts for the recently acquired Red Trail Energy assets and preliminary results with a 2025 outlook for Gevo’s dairy Renewable Natural Gas (RNG) project. Updates on Gevo’s first Net Zero plant, now called ATJ-60, were also part of the announcement.
Whitfield expressed optimism about the future, particularly for the Net Zero North project and the EBITDA potential of the dairy RNG project. While current EBITDA stands at -$75.61M, he noted these elements could significantly contribute to the company’s adjusted EBITDA growth in 2025. The analyst’s comments come as the market anticipates Gevo’s fourth-quarter 2024 financial and operational results, scheduled for May 7, 2025. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 8.25, though it faces profitability challenges.
The business update from Gevo highlighted the integration and financial projections of Red Trail Energy’s assets, which the company recently added to its portfolio. The initial results from the dairy RNG project, which is part of Gevo’s broader strategy to develop renewable energy resources, also seem promising for the company’s growth prospects.
In addition to these developments, Gevo’s Net Zero plant, ATJ-60, is expected to play a critical role in the company’s strategy. The project aims to produce energy with a net-zero greenhouse gas footprint, aligning with increasing global demand for sustainable energy solutions.
The maintained Buy rating and price target reflect Texas Capital Securities’ confidence in Gevo’s strategic direction and potential for financial growth. As the market looks forward to Gevo’s upcoming financial disclosures, the focus remains on the company’s ability to execute its projects and achieve its projected EBITDA growth. InvestingPro analysis indicates the stock is currently undervalued, with 15 additional ProTips and comprehensive financial metrics available to subscribers through the platform’s detailed Pro Research Report, helping investors make more informed decisions about this emerging renewable energy player.
In other recent news, Gevo, Inc. has been actively involved in several strategic developments. The company has completed the acquisition of Red Trail Energy for $210 million, a move that aligns with its focus on sustainable energy production and carbon sequestration. This acquisition, which includes a 65 million gallon per year ethanol production facility, is expected to enhance Gevo’s portfolio. Following this transaction, South 8 Energy, formerly known as Red Trail Energy, has rebranded after selling a substantial portion of its assets to Gevo and its subsidiaries. The rebranding was officially recognized by the North Dakota Secretary of State.
In another development, Gevo has formed a strategic alliance with Axens to advance the commercialization of sustainable aviation fuel using ethanol-to-jet technology. This partnership aims to leverage both companies’ technologies to produce cost-effective sustainable fuels. Additionally, Gevo has extended its joint development agreement with LG Chem to expedite the commercialization of its Ethanol-to-Olefins technology, which is intended to produce renewable chemicals and fuels. Analyst Amit Dayal from H.C. Wainwright has maintained a Buy rating on Gevo, with a price target of $14, reflecting confidence in the company’s strategic direction and growth potential. These recent developments underscore Gevo’s commitment to sustainability and innovation in the renewable energy sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.