Piper Jaffray Downgrading Green Plains Renewable To Neutral (GPRE)

Piper Jaffray is downgrading shares of Green Plains Renewable (NASDAQ: GPRE) to Neutral, with an $11 price target, as the Minnesota-based investment bank believes ethanol prices are likely to remain high, and hurt margins. It has an $11 price target on shares.

In a note to clients, Piper Jaffray writes, "We are downgrading shares of GPRE to Neutral and reducing estimates for FY11 as we believe the prospect of falling oil prices and sustained high corn prices will pressure ethanol production margins. Excess industry capacity and the likely reduction (or expiration) of the blenders' tax credit will compound this issue. Our price target is moving to $11."

Shares of Green Plains closed at $9.16 yesterday.