In a research report issued Tuesday, Roth Capital analyst Matt Koranda reiterated a Neutral rating on shares of Clean Diesel Technologies, Inc. (NASDAQ:CDTI) with a $0.40 price target, after the mission control system maker announced a strategic investment and secured agreements to convert $8 million of debt into equity. Following the news, shares of the company rallied nearly 19%.
Koranda noted, “In our view, the conversion materially improves CDTI’s balance sheet from a solvency perspective, while the Haldor Topsoe investment provides a credible data point validating CDTI’s approach to low and zero PGM catalyst technologies. While we maintain our Neutral on limited visibility into near-term liquidity, we view this event as a positive for the company.”
As usual, we recommend taking analyst notes with a grain of salt. They are often successful in moving the stock price, but you always need to take things into perspective. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matt Koranda has a yearly average return of -1.5% and a 44% success rate. Koranda has a -23.3% average return when recommending CDTI, and is ranked #3031 out of 4010 analysts.
Clean Diesel Technologies, Inc. manufactures and distributes light duty vehicle catalysts and heavy duty diesel emissions control systems and products to automakers, distributors, integrators, and retrofitters in the United States, Canada, Sweden, and the United Kingdom. It operates through two divisions, Catalyst and Heavy Duty Diesel Systems.