Roth Capital analyst Craig Irwin weighed in with a favorable report on shares of Pacific Ethanol Inc (NASDAQ:PEIX), after the ethanol maker released its second-quarter results, posting revenues and EPS of $442.9 million and $0.11, compared to Irwin’s estimates at $395 million  and $0.06, respectively.

Irwin noted, “Pacific Ethanol reported strong 2Q16 results on materially improved crush margins. We see the supply/demand balance as positive, where the outlook for more limited 2016 debottlenecking and healthy demand growth points to a more bullish setup for 2H16 and 2017, indicating, in our view, that our base scenario of ~$0.15/gal 2017 crush EBITDA as well supported. The wild card, in our opinion, for 2H16 and 2017 remains the potential for incremental exports to Brazil, which could help drive materially higher profitability.”

The analyst reiterated a Buy rating on PEIX with a $9 price target, which represents a potential upside of 33.5% from where the stock is currently trading.

As usual, we recommend taking analyst notes with a grain of salt. According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Craig Irwin has a yearly average return of -3.9% and a 39% success rate. Irwin has a -38.4% average return when recommending PEIX, and is ranked #3660 out of 4087 analysts.

As of this writing, the 2 analysts polled by TipRanks rate Pacific Ethanol stock a Buy. With a return potential of 37%, the stock’s consensus target price stands at $9.25.