Gevo, Inc. (GEVO) PT Lowered to $1.50 at Stifel

Stifel analyst Derrick Whitfield lowered the price target on Gevo, Inc. (NASDAQ: GEVO) to $1.50 (from $1.70) while maintaining a Buy rating.

The analyst commented: "We are constructive on the technical leadership of management, the company's impressive demand pipeline for its Net Zero concept and the stock's differentiated exposure to sustainable aviation fuel (SAF) production. We are positive on the company's recent decision to pursue a capital-light model to accelerate development of SAF projects and lower execution risk. Gevo also offers exposure to an operating dairy RNG project which we value at ~$100mm. Net-net, Gevo is a leader in the alcohol to jet (ATJ) pathway, a pathway that is advantaged in the production of SAF, which we view as the future of the RD/SAF sector. We have updated our model for strip commodity and environmental attribute prices as of April 16, 2024. At strip prices and assumed activity levels, we project an improving Fwd. Net Debt / EBITDAX profile (1.1x in 2024E, -9.2x in 2026E). During this period (2024E-2026E), the company is expected to generate negative free cash flows. We reiterate our Buy rating and lower our target price to $1.50/share ($1.70/share previously) due to operational and financial updates."

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