H.C. Wainwright analyst Amit Dayal maintained a Buy rating on Calumet Specialty Products today and set a price target of $33.00.
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Amit Dayal has given his Buy rating due to a combination of factors that highlight Calumet Specialty Products’ strategic positioning and operational improvements. The company has achieved significant cost reductions, lowering its operating expenses by approximately $42 million year-over-year, which positions it well to leverage operating efficiencies as the market conditions for renewables improve. The extension of tax credits and stricter regulatory standards provide a favorable backdrop for the company to enhance its renewable margins.
Additionally, Calumet’s financial performance is bolstered by the strength in its Specialty Products and Solutions (SPS) segment, which contributed significantly to its adjusted EBITDA. The company’s plans to scale its MaxSAF production and ongoing efforts to reduce debt further strengthen its financial standing. With successful milestones achieved, including securing a loan from the U.S. Department of Energy, Calumet is in a robust market position, and its stock performance is expected to benefit from improvements in the broader macroeconomic environment.
Dayal covers the Industrials sector, focusing on stocks such as Joby Aviation, Vertical Aerospace, and Archer Aviation. According to TipRanks, Dayal has an average return of -7.0% and a 33.33% success rate on recommended stocks.
In another report released on August 8, Bank of America Securities also reiterated a Buy rating on the stock with a $20.00 price target.