UPDATE: Citi Initiates Gevo at Hold (GEVO)

Citi is out with its report today on Gevo

, initiating GEVO at Hold with a $21 PT. In a note to clients, Citi writes, "We initiate coverage of GEVO with a Hold/Speculative Risk rating and a $21 target price. GEVO is a biofuels company targeted to be the first to enter commercial production of starch-based isobutanol using the same feedstocks as used to make ethanol today. Isobutanol will not require subsidies to be profitable for Gevo, and the product is chemically identical to isobutanol produced today as a byproduct of other processes that use petroleum based products as a feedstock. It also has greater variety of end markets." Shares of GEVO closed Friday at $19.73, up 1.75% from Thursday's close.