Analyst Amit Dayal of H.C. Wainwright maintained a Buy rating on Alto Ingredients, with a price target of $5.50.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Amit Dayal has given his Buy rating due to a combination of factors that highlight Alto Ingredients’ strong financial performance and strategic positioning. The company reported a significant increase in revenues and profitability for the third quarter of 2025, driven by higher renewable fuel export sales and improved margins from European operations. This financial improvement is supported by the company’s diversification strategy, which has opened up high-return markets, including the European market and acquisitions like Carbonic.
Looking ahead, several favorable conditions are expected to further benefit Alto Ingredients. These include regulatory support such as the extension of 45Z tax credits, increased domestic demand due to policies like California’s E15, and potential operational enhancements like the reopening of the Magic Valley facility. Additionally, the company’s efforts in cost containment and efficiency improvements, including the reorganization that led to significant savings, position it well for future growth. These strategic moves, coupled with potential insurance recoveries and infrastructure upgrades, underpin the positive outlook for Alto Ingredients, justifying the Buy rating.
According to TipRanks, Dayal is a 3-star analyst with an average return of 1.3% and a 37.35% success rate. Dayal covers the Industrials sector, focusing on stocks such as Orion Energy Systems, Plug Power, and Vertical Aerospace.