UBS Starts OPAL Fuels Inc (OPAL) at Buy

UBS analyst William Grippin initiates coverage on OPAL Fuels Inc (NASDAQ: OPAL) with a Buy rating and a price target of $13.00.

The analyst comments "We initiate coverage of OPAL Fuels with a Buy rating and $13 price target. We expect OPAL to grow adj. EBITDA by ~55% CAGR through 2026E, underpinned by a 4-yr construction backlog of renewable natural gas (RNG) projects. In our view, OPAL offers a favorable risk/reward skew with the current ~11x 2024 UBSe EV/EBITDA multiple not fully reflecting the growth potential of OPAL's project backlog. Key milestones over the next 12 months include: 1) On-time commissioning of 4 out of 7 currently in-construction projects, 2) conversion of 4-5 pipeline projects to in-construction status, 3) Establishment of final 2023 renewable fuel volume obligations by the EPA."

For an analyst ratings summary and ratings history on OPAL Fuels Inc click here. For more ratings news on OPAL Fuels Inc click here.

Shares of OPAL Fuels Inc closed at $9.41 yesterday.

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