CBEH May be Able to Sell its Entire Biodiesel Production in Three Years
Cowen and Company initiated coverage of China Integrated Energy (NASDAQ: CBEH) with an "outperform" rating.
According to Cowen and Company, with the Chinese government continuing to invest heavily in the country's infrastructure, the demand for oil in the nation is likely to grow at an average of 5% per annum for the next decade. CBEH has substantial exposure to the growing fuel market in China, Cowen and Company mentions.
China Integrated Energy may leverage its competitive edge to gain additional customers and expand its network of retail gas stations, Cowen and Company said. This might boost CBEH's revenue growth going forward, Cowen and Company added. Cowen and Company expects CBEH to sell its entire biodiesel production over the next three years, resulting in gross margin expansion.
