In a research report published today, Roth Capital analyst Craig Irwin reiterated a Buy rating on Pacific Ethanol (NASDAQ:PEIX) with a $16 price target, following the company’s conference call where management provided additional detail on the Aventine acquisition.
Irwin noted, “We see this acquisition as positive for holders of Pacific Ethanol, as following the transaction they will own retain around 58% ownership in the public company, with Pacific Ethanol contributing 39% of the combined plant capacity.”
The analyst continued, “Management confirmed on the call that the 37 mgy Canton plant is included in the transaction, but is not currently operating, and could require significant capital to successfully restart. We expect that following completion of the transaction PEIX will complete additional diligence evaluating a possible restart.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Craig Irwin has a total average return of -7.1% and a 38.6% success rate. Irwin has a -9.9% average return when recommending PEIX, and is ranked #3217 out of 3434 analysts.