Guggenheim Starts Alto Ingredients (PEIX) at Buy

January 29, 2021 6:17 AM EST
Get Alerts PEIX Hot Sheet
Price: $6.78 --0%

Rating Summary:
    5 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 17 | New: 52
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Guggenheim analyst Shahriar Pourreza initiates coverage on Alto Ingredients (NASDAQ: PEIX) with a Buy rating and a price target of $11.00.

The analyst comments "We are initiating coverage of PEIX (Alto Ingredients) with a BUY rating and $11 price target. We believe that the PEIX story is a true turnaround that is entering the late innings – new mgmt. seized an opportunity to operationally reposition the largely fuel ethanol producer into a specialty ingredients company while simultaneously recapitalizing financially into what is effectively a 100% equity capitalized cash flow generation story. In this note, we discuss what we believe is a variety of potential upside glide paths that could at least sustain the cash flow momentum for PEIX from both fuel ethanol production, specialty alcohols ingredients, and co-products (i.e., food and beverage grade, sanitizers, pharmaceuticals, and corn byproducts). The bottom line: PEIX is set up as a small cap stock with a 19% cash flow yield and, with elimination of near-term liabilities in 2021, we believe will transform either into a shareholder total return story or M&A candidate (as either a buyer or seller)."

For an analyst ratings summary and ratings history on Alto Ingredients click here. For more ratings news on Alto Ingredients click here.

Shares of Alto Ingredients closed at $6.52 yesterday.



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