We Remain Cautious On Clean Energy’s Shares Until We See Faster Adoption, Says MLV
In a research note published today, MLV analyst Carter Driscoll initated coverage on shares of Clean Energy Fuels Corp. (NASDAQ:CLNE) with a Hold rating and an $8 price target, which represents a 19% upside from where the stock is currently trading.
Driscoll wrote, “The company is one of the largest providers of natural gas (“natgas”) used as a transportation fuel for vehicle fleets in North America. CLNE is leveraged to the increasing adoption of natgas, in particular by medium (MD) and heavy-duty (HD) truck fleets that are displacing diesel for economic and emissions reasons. We believe CLNE has several positives including first mover advantages, an extensive station network, stable core markets, etc. However, we believe the key to company’s revenue growth and drive towards profitability is the adoption by regional and long haul truck fleets that are expected to be the largest consumers of natgas fuel. We believe the stock price reflects a more muted adoption curve as fleet uptake has been slower than initial expectations. As such we remain cautious until we see faster adoption and greater utilization of the company’s retail fuel stations.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Carter Driscoll has a total average return of -8% and a 37.5% success rate. Driscoll has a -32.6% average return when recommending CLNE, and is ranked #2825 out of 3352 analysts.