2023-07-26 14:53:06 ET
Vertex Energy ( NASDAQ: VTNR ) edges higher in Wednesday's trading after plummeting 24% in the previous session, following its Q2 operational update indicating lower crack spread capture and higher operating expense compared to prior guidance.
Oppenheimer downgraded Vertex ( VTNR ) to Perform from Outperform following the update, while believing the company is "demonstrating improved operational discipline and adding value to the business via process improvements and portfolio optimization, we are attentive to spread compression and execution risks in a challenging commodities environment."
Vertex ( VTNR ) has shown the ability to adapt to challenging market and operating conditions, but "we are looking for better clarity around renewable diesel economics and feedstock diversification, conventional refining strategy, cash generation profile and capital allocation," according to Oppenheimer.
More on Vertex Energy:
- Financial and valuation comparison to sector peers
- Analysis: Oil Refining Stocks: Three Companies Trumping Vertex Energy
- Stock price return: Down 16% YTD, down 54.5% in the past 12 months
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Vertex Energy cut at Oppenheimer on spread compression, execution risks