H.C. Wainwright analyst Amit Dayal maintained a Buy rating on Aemetis (AMTX – Research Report) today and set a price target of $28.00.
Amit Dayal has given his Buy rating due to a combination of factors that highlight Aemetis’s potential for growth and financial improvement. The company is expected to significantly enhance its renewable natural gas (RNG) production by 2025, supported by the introduction of new dairy digesters. This expansion is anticipated to be bolstered by the Inflation Reduction Act’s 45Z Production Tax Credits, although its realization depends on forthcoming IRS guidelines.
Aemetis is also poised to benefit from a new contract for its India biodiesel plant, with expectations of monetizing this segment through an IPO in the Indian market. The potential cash flows from the RNG business and proceeds from the biodiesel IPO are projected to strengthen the company’s balance sheet. Additionally, Aemetis’s revenue is forecasted to grow substantially over the next decade, driven by strategic funding and operational execution, despite risks such as dilution and regulatory challenges.
According to TipRanks, Dayal is an analyst with an average return of -24.7% and a 21.77% success rate. Dayal covers the Industrials sector, focusing on stocks such as Ceco Environmental, Plug Power, and Joby Aviation.