CLNE - Why Clean Energy Fuels Stock Popped 4% Today
2023-10-03 17:48:01 ET
Shares of Clean Energy Fuels (NASDAQ: CLNE) closed up 3.9% on Tuesday after investment bank Raymond James upgraded the stock from "outperform" (i.e., buy) to "strong buy" -- while leaving its price target flat at $6.
Clean Energy Fuels provides compressed natural gas (CNG), liquefied natural gas (LNG), and renewable natural gas (RNG) for use as fuel in medium- and heavy-duty trucks. It's the third of these categories that provides the foundation for Raymond James' optimism.
As the Raymond Jams analyst explains, Clean Energy is "on the cusp" of ramping up production of its own RNG -- generally speaking, biogas generated from the decomposition of organic waste -- to supplement its supplies of natural gas fuel. At the same time as Clean Energy is ramping production, it's also awaiting confirmation that it is entitled to claim a "clean fuel production credit" from the IRS, known as Section 45Z.
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Why Clean Energy Fuels Stock Popped 4% Today