Calumet Specialty Products ( NASDAQ: CLMT ) +7% to a 52-week high in Thursday's trading after Goldman Sachs upgraded shares to Buy from Neutral with a $23 price target, raised from $14, citing factors that include the recent $250M financing for a renewable diesel project in Montana.
Goldman analyst Carly Davenport raises estimates and valuation on the back of the funding for Calumet's ( CLMT ) Montana Renewables LLC segment, "including the feedstock pre-treatment unit that we had previously not built into our estimates."
Davenport also sees "ample headroom for deleveraging as cash flow from renewable diesel commences in addition to continued contribution from its Specialty Products & Solutions segment."
After Calumet's ( CLMT ) YTD underperformance, Davenport said consensus EBITDA is meaningfully lower vs. Goldman's estimates in 2022 and 2023.
Calumet Specialty Products ( CLMT ) recently reported a Q2 GAAP loss of $0.19/share on revenues of $1.4B .
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Calumet jumps to 52-week high as Goldman upgrades after project funding