Green Plains Renewable Energy stock rating upgraded by Oppenheimer after debt reduction

Published 28/08/2025, 11:54
Green Plains Renewable Energy stock rating upgraded by Oppenheimer after debt reduction

Investing.com - Oppenheimer upgraded Green Plains Renewable Energy (NASDAQ:GPRE) from Perform to Outperform and established a $14.00 price target on Thursday. The stock, currently trading at $9.95, has shown remarkable momentum with a 22% gain in the past week and nearly 70% surge over six months, according to InvestingPro data.

The upgrade follows Green Plains’ sale of its Obion plant, which allowed the company to pay off its expensive mezzanine debt while adding liquidity to its balance sheet, according to Oppenheimer. InvestingPro analysis shows the company maintains a healthy current ratio of 1.47, with liquid assets exceeding short-term obligations.

The strengthened financial position has enabled Green Plains to conclude its 18-month strategic review process, during which the company implemented significant changes including new management, a refreshed board, and third-party merchandising.

Oppenheimer noted that macroeconomic factors have created a favorable environment for Green Plains, including an extended 45Z, supportive Renewable Fuel Standard (RFS), and improved carbon monetization opportunities.

The research firm also highlighted that Green Plains is benefiting from modestly improved crush margins against lower corn prices and healthy export demand.

In other recent news, Green Plains Inc. reported a significant miss in its Q2 2025 earnings, with an earnings per share (EPS) of -$1.09, falling short of the forecasted -$0.33. The company’s revenue also underperformed, totaling $552.8 million compared to the expected $610.2 million, representing a 10.7% decline from the previous year. Additionally, Green Plains announced plans to sell its Tennessee ethanol plant to POET for $190 million in cash. The sale, which includes approximately $20 million in working capital, aims to reduce debt and enhance liquidity, with the transaction expected to close in the third quarter of 2025 pending regulatory approvals. In leadership changes, Green Plains appointed Chris Osowski as the new Chief Executive Officer, effective immediately. Osowski previously held the position of Executive Vice President of Operations and Technology. Furthermore, BofA Securities downgraded Green Plains from Neutral to Underperform, despite the stock rallying significantly from mid-April lows. BofA Securities also raised its price target to $7.00 from $4.50, though it remains below the current stock price.

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