H.C. Wainwright maintains Gevo stock Buy rating, $14 price target
Investing.com
Published Mar 10, 2025 08:43AM ET
On Monday, H.C. Wainwright reaffirmed its Buy rating on Gevo , Inc. (NASDAQ:GEVO) with a steady price target of $14.00, representing significant upside from the current stock price of $1.30. The firm's analyst highlighted the company's recent business update, which underlined Gevo's commitment to reaching positive adjusted EBITDA by 2025. According to InvestingPro data, analyst targets for the stock range from $1.40 to $14.00, with 13 additional exclusive ProTips available for subscribers.
Gevo, a renewable chemicals and advanced biofuels company, announced on March 7 that it ended the fourth quarter of 2024 with $259.0 million in cash and cash equivalents, including $69.6 million in restricted cash. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 8.25, though it's currently experiencing rapid cash burn. The update also detailed that Gevo North Dakota, previously known as Red Trail, had generated $150 million in revenue in the fiscal year ending September 30, 2024, and is projected to contribute $30-60 million of adjusted EBITDA annually.
Looking ahead, Gevo expects its renewable natural gas (RNG) operations to show improved results in 2025, contributing meaningfully to adjusted EBITDA. The company is also anticipating the financial closure of its Alcohol-to-Jet 60 (ATJ-60) project, previously referred to as Net Zero 1 or NZ1, during the course of 2025. Despite current negative EBITDA of -$75.61 million, the company maintains a "Fair" overall financial health score according to InvestingPro 's comprehensive analysis framework.
In addition, Gevo's Software-as-a-Service (SaaS) platform, Verity, is designed to provide end-to-end traceability of regenerative agriculture attributes and low-carbon fuel products. The company expects Verity to grow its customer base and start generating initial revenues. Moreover, Gevo plans to continue developing its patented Ethanol to Olefins (ETO) technology.
The analyst's reiteration of the Buy rating and price target reflects confidence in Gevo's strategic initiatives and financial path. The company's focus on revenue-generating projects and technological advancements are central to its goal of achieving positive financial metrics by the targeted year.
In other recent news, Gevo, Inc. has completed the acquisition of Red Trail Energy for $210 million, marking a significant addition to its portfolio. This acquisition includes a 65 million gallon per year ethanol production facility, now renamed Net-Zero North, which aligns with Gevo's focus on sustainable energy and carbon sequestration. Texas Capital Securities and H.C. Wainwright have both maintained Buy ratings on Gevo, with price targets of $4.50 and $14.00, respectively, reflecting confidence in the company's strategic direction and growth potential. Gevo's recent business update highlighted promising financial forecasts for the newly acquired Red Trail Energy assets and the company's dairy Renewable Natural Gas project, contributing to its projected EBITDA growth in 2025.
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Additionally, Gevo has entered a strategic alliance with Axens to advance the development of sustainable aviation fuel through the ethanol-to-jet technology pathway. This partnership aims to leverage both companies' technologies to create a more cost-effective and commercially viable sustainable aviation fuel. Meanwhile, South 8 Energy, formerly known as Red Trail Energy, has rebranded following the asset sale to Gevo. The rebranding, approved by the North Dakota Secretary of State, marks a new chapter for the company as it adapts to the evolving marketplace. These developments underscore Gevo's commitment to sustainability and its strategic efforts to expand its renewable energy capabilities.
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Written By: Investing.com
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