Analyst Jason Gabelman of TD Cowen maintained a Hold rating on Clean Energy Fuels (CLNE – Research Report), reducing the price target to $3.00.
Jason Gabelman has given his Hold rating due to a combination of factors influencing Clean Energy Fuels’ financial outlook. The company’s fourth-quarter results exceeded expectations, primarily driven by stronger distribution margins. However, the guidance for fiscal year 2025 EBITDA is lower than anticipated, primarily due to reduced distribution volumes and increased upstream operational expenses.
While there is potential for upside in 2025 EBITDA from favorable outcomes in AFTC credits or stronger RIN prices, the current guidance suggests underwhelming growth. The company’s distribution guidance reflects lower volumes than previously estimated, which impacts the overall financial forecast. These elements contribute to a cautious outlook, justifying the Hold rating and a reduced price target of $3.00.
According to TipRanks, Gabelman is a 4-star analyst with an average return of 7.0% and a 52.50% success rate. Gabelman covers the Energy sector, focusing on stocks such as Cheniere Energy, Exxon Mobil, and Phillips 66.