H.C. Wainwright analyst Amit Dayal has maintained their bullish stance on ALTO stock, giving a Buy rating yesterday.
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Amit Dayal has given his Buy rating due to a combination of factors that highlight Alto Ingredients’ strategic positioning and potential for future growth. Despite facing challenges such as a decline in revenue and a net loss in the recent quarter, the company has demonstrated resilience through its cost-cutting measures, achieving $8 million in annualized savings. This operational efficiency, coupled with the potential reimbursement from insurance for the loading dock outage at Pekin, positions the company to improve its financial performance.
Furthermore, Alto Ingredients is actively pursuing projects to lower carbon intensity scores, which could enhance its eligibility for 45Z credits, potentially generating significant revenue in the coming years. The company’s strategic focus on high-margin ISCC export products to Europe and the potential benefits from E15 adoption in the U.S. market further bolster its growth prospects. These initiatives, along with the monetization of idled Western assets, underscore the company’s proactive approach to maximizing its operational and financial potential, justifying the Buy rating.
According to TipRanks, Dayal is an analyst with an average return of -6.2% and a 33.47% success rate. Dayal covers the Industrials sector, focusing on stocks such as Joby Aviation, Vertical Aerospace, and Archer Aviation.