tiprankstipranks
Ratings

Calumet Specialty Products: Buy Rating Driven by DOE Loan Progress and Renewable Growth Prospects

Calumet Specialty Products: Buy Rating Driven by DOE Loan Progress and Renewable Growth Prospects

H.C. Wainwright analyst Amit Dayal maintained a Buy rating on Calumet Specialty Products (CLMTResearch Report) today and set a price target of $33.00.

Discover the Best Stocks and Maximize Your Portfolio:

Amit Dayal has given his Buy rating due to a combination of factors including the recent positive development regarding Calumet Specialty Products’ loan process with the U.S. Department of Energy. The resumption of the loan process and the anticipated receipt of the first tranche of $782 million alleviates previous uncertainties and strengthens the company’s financial position.
Dayal sees the current market volatility as an opportunity for investors to enter the stock at appealing levels, especially considering the expected growth in sustainable aviation fuel demand. The analyst anticipates significant improvements in the company’s operational performance, supported by factors such as enhanced cash flow, improved margins from renewable fuels, and potential strategic options for the renewables business. The analyst’s confidence is further backed by projected growth in adjusted EBITDA and overall gross margins, leading to a $33.00 price target.

1