UPDATE: Lake Street Capital Initiates ADA-ES with Buy on Anticipated New Phase

In a report published Tuesday, Lake Street Capital Markets analyst Robert D. Brown initiated coverage on ADA-ES

with a Buy rating and $38.00 price target. In the report, Brown noted, “Over the past few years, ADA has been in a ready-set-wait mode pending certainty on emissions regulations, clarity from the IRS on tax credit monetization efforts, and completion of complex legal agreement with its monetization partners. These issues now look to be resolved and ADA is on the cusp of a new phase that should start to show the cash flows inherent in its business model.We estimate ADA is worth $38 per share, which reflects only the 28 units that are qualified in the Refined Coal (RC) segment (reaching $80 million per year in cash flow and driving EPS to over $5). However, we believe ADA's other operating businesses could be worth roughly the same as the RC business if they are able to develop meaningful recurring revenue streams and cash flow. For now, we view these as embedded call options that, if successful, would open up new growth opportunities.” ADA-ES closed on Monday at $30.41.