UPDATE: Wedbush Maintains On Renewable Energy On Falling Feedstock Prices

In a report published on Sunday, Wedbush analyst Craig Irwin maintained an Outperform rating on Renewable Energy Group REGI despite lowering the price target from $18.00 to $16.00. In the report, Wedbush says "Our $16 target is based on a 4.5x EV/EBITDA multiple on 2014 estimates, and a lower multiple reflects near-term uncertainty. We believe shares of REG should trade at a discount to larger and more diversified agribusiness comps. REG shares are currently trading at 3.7x EV/EBITDA multiples on 2014 estimates, well below agribusiness comps at 5.9x, respectively. We believe REG is well positioned to deliver good EBITDA and production growth in 2014 by reinvesting cash flows in accretive and organic expansion. REG's expertise with low-cost feedstocks reinforces the company's status as a low-cost producer, where the adoption of this technology and existing and acquired facilities provides the opportunity to further reduce operating costs." Renewable Energy closed on Friday at $13.38.