Fueling Concerns: Analyst Downgrades Vertex Energy Amid Refining Industry Challenges
Portfolio Pulse from Lekha Gupta
Stifel analyst Michael E. Hoffman downgraded Vertex Energy Inc (VTNR) to Hold from Buy and lowered the price target to $4 from $6 due to challenges in the refining industry. The downgrade reflects concerns over falling conventional refining selling prices and crack spreads, leading to breakeven or modest profits. The analyst also adjusted revenue and EBITDA estimates downward for FY23 and FY24, citing volatility in refining profits, depressed D4 RIN prices, and increased RD feedstock costs. VTNR shares dropped 4.53% to $3.4750 following the news.
December 19, 2023 | 6:56 pm
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Vertex Energy downgraded by Stifel to Hold with a price target of $4, reflecting industry challenges that may affect profitability and revenue. Shares fell 4.53% to $3.4750.
The downgrade by a prominent analyst due to industry-wide challenges and the adjustment of financial estimates are likely to negatively impact investor sentiment in the short term. The immediate drop in share price post-announcement indicates a direct correlation between the downgrade and investor reaction.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100