Clean Energy Fuels (CLNE) Underweight Reiterated at Piper Jaffray Post Q3

Piper Jaffray analyst Alexander Potter reiterated an Underweight rating and $4 price target on Clean Energy Fuels (NASDAQ: CLNE) following Q3 results.

Potter commented, "We remain Underweight following CLNE's Q3 results. Management has taken a more cautious approach to cash management, as evidenced by a sharp reduction in G&A spending during Q3 (SG&A totaled $28.2M in the quarter, a decline of 15.8% y/y and 18% q/q). Furthermore, capex spending in 2015 will likely decline vs. 2014, which should help the company stay afloat. However, per-gallon gross profitability remains well shy of expectations (still sub-$0.30), and until this metric improves, we think it will be difficult for CLNE to generate a sufficient amount of cash. Our price target of $4.00 remains based on 1x estimated book value in one year's time."

The firm cut FY 2014 EPS from ($1.02) to ($1.05) and FY 2015 EPS from ($0.52) to ($0.75).

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

Shares of Clean Energy Fuels closed at $6.68 yesterday.

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