Summary
- Blue Orca released a short report on Enviva last week, knocking the stock down ~20%.
- They characterized Enviva as overstating cash flows, EBITDA, and likely to cut the dividend. We point out the realities of their dividend coverage, which is weak, but unlikely to get.
- Their claims surrounding deforestation are simply silly in our view.
- While we have no idea where EVA might trade in this bear market, this sell-off looks to be an opportunity to pick up shares at a significant discount.
- We posit that the long-term upside is well over $100 in 4-5 years.
For further details see:
Enviva: Why Blue Orca's Short Report Is Grossly Misleading