Enviva ( NYSE: EVA ) +6.7% in Tuesday's trading after Raymond James upgraded shares to Strong Buy from Outperform with an $80 price target, calling the upgrade the "direct result of the market misunderstanding the ESG attributes of the business."
The pressure on Enviva ( EVA ) shares caused by the recent short report from Blue Orca is "a textbook example of sentiment-based multiple compression," but Ray Jay's Pavel Molchanov believes the stock's "recent dislocation provides a compelling entry point."
"We are making an affirmative case for something that, to be candid, we never thought would become a point of contention: Bioenergy is an environmentally and socially beneficial replacement for coal in power generation," and "harvesting timber is not tantamount to deforestation," Molchanov wrote.
Saying Enviva ( EVA ) shares overreacted to the downside, Citi also recently upgraded the company to Buy from Neutral .
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Enviva upgraded at Raymond James on 'misunderstanding' ESG attributes