Vertex Energy price target lowered to $1.50 from $4 at Stifel

Stifel lowered the firm’s price target on Vertex Energy to $1.50 from $4 and keeps a Hold rating on the shares. Vertex has made the strategic decision to pause its renewable diesel production and convert the hydrocracker back to conventional finished product production. While this removes the RD risk, it makes Vertex a small independent conventional refinery with exposure to historically volatile crack spreads, says the analyst. The firm’s revised price target assumes fuel gross margin dips in Q2, gradually increases in the second half and then averages $13.50 over the long-term, the analyst noted.