Wedbush Starts FutureFuel Corp. (FF) at Outperform, Price Target Offers 43% Upside
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Price: $5.56 -0.36%
Rating Summary:
3 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Wedbush initiates coverage on shares of FutureFuel Corp. (NYSE: FF) with an Outperform rating and $16 price target.
The firm believes FF's Chemical business will continue to generate strong cash flows and earnings, while its Biofuels business is also expected to see strong production growth.
The firm reports that RFS2 Biodiesel RINs are more valuable than the expiring Blender’s Credit and should facilitate an orderly transition.
An analyst at Wedbush comments, "Our model has declining 2011 and 2012 Chemicals segment sales on lower sales of bleach activator to P&G, as consumer preferences are moving from powder to liquid detergents. We expect the Biofuels segment to achieve higher production volumes with flat commodity prices. Our assumptions are consistent with biodiesel plant utilization rising from 50% in 3Q11 to around 60% in 2012, leaving potential room for upside on higher utilization."
For an analyst ratings summary and ratings history on FutureFuel Corp. click here. For more ratings news on FutureFuel Corp. click here.
Shares of FutureFuel Corp. closed at $11.19 yesterday.
The firm believes FF's Chemical business will continue to generate strong cash flows and earnings, while its Biofuels business is also expected to see strong production growth.
The firm reports that RFS2 Biodiesel RINs are more valuable than the expiring Blender’s Credit and should facilitate an orderly transition.
An analyst at Wedbush comments, "Our model has declining 2011 and 2012 Chemicals segment sales on lower sales of bleach activator to P&G, as consumer preferences are moving from powder to liquid detergents. We expect the Biofuels segment to achieve higher production volumes with flat commodity prices. Our assumptions are consistent with biodiesel plant utilization rising from 50% in 3Q11 to around 60% in 2012, leaving potential room for upside on higher utilization."
For an analyst ratings summary and ratings history on FutureFuel Corp. click here. For more ratings news on FutureFuel Corp. click here.
Shares of FutureFuel Corp. closed at $11.19 yesterday.
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