Certain food-based biofuels like biodiesel have always been a bad idea. Others like corn ethanol have served a useful purpose and essentially are obsoleting themselves.
– Vinod Khosla
Biodiesel producer Renewable Energy Group (REGI) has appreciated 276% in the last one year. Analysts are bullish on the stock over the long term. On September 1, 2020, when the stock was hovering at around $33, Credit Suisse initiated coverage with an Outperform rating and a price target of $51. The firm estimated that REGI was the biggest biodiesel producer in the U.S. and had considerable flexibility and rich experience, and was therefore a potential JV partner or an acquisition candidate. On the same day, Truist Securities initiated coverage on the stock with a Buy rating and a price target of $70.
The stock price is running on such heavy fuel that it has already crossed above Credit Suisse’s target price