CLNE - Clean Energy Fuels a new Buy at Stifel as top pick in dairy renewable natgas

2023-07-13 15:57:56 ET

Clean Energy Fuels ( NASDAQ: CLNE ) +3.7% in Thursday's trading as Stifel initiates coverage with a Buy rating and $6 price target, saying the company is well positioned to benefit from an improving macro environment for dairy renewable natural gas and its industry-leading distribution network, including a 54% market share in California.

Stifel analysts led by Derrick Whitfield said they expect California's Low Carbon Fuel Standard and the Inflation Reduction Act will serve as a growth catalyst for the dairy renewable natural gas sector, "as ultra-low carbon intensity fuels such as dRNG are inherently more valuable in markets that compensate operators for the carbon intensity of their fuels."

The final Renewable Fuel Standard policy and the introduction of Cummins' 15-liter natural gas engine also are material tailwinds for the stock, Stifel said.

More on Clean Energy Fuels:

• Financial and valuation comparison to sector peers
• Analysis: Clean Energy Fuels: More Of The Same
• Stock price return: Down 3.5% YTD, flat in the past 12 months

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