Clean Energy Gets a Boost

Posted on January 5, 2021 by Brad Steveson

This morning, Craig-Hallum announced it is doubling its price target on Clean Energy Fuels stock from $6 to $12 per share. Clean Energy stock closed at $7.83 per share on Monday. The stock has traded just a little over $9 per share so far today on the news, up more than 15%.

In its note, this morning, Craig-Hallum explains that it’s encouraged by continued growth in fuel volumes delivered through 2020, by Clean Energy’s July partnership with Chevron, as well as by Congress’ reinstatement of an alternative fuels tax credit (AFTC) for 2021, which will benefit Clean Energy’s business. I previously wrote about the AFTC HERE along with their partnerships with TOT and BP.

“A growing number of fleets [are] interested in a low emissions and cleaner-than-electric solution” offered by Clean Energy, says the analyst. The extension of “low carbon index” (CI) fuel credits in particular, says Craig-Hallum, will add $20 million in high profit margin revenue to Clean Energy’s top line in 2021, and there’s also the potential that Clean Energy could enjoy “a longer-term extension [of these credits] in some form.”

I am still watching this one from the sidelines, but my interest level remains high.

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