Clean Energy Fuels Downgraded At Raymond James, In Response To Inflation Recovery Act

  • Raymond James analyst Pavel Molchanov downgraded Clean Energy Fuels Corp CLNE to Market Perform, from Outperform, without a price target.
  • The analyst talks about The Inflation Reduction Act, which is set to be signed into law this week and comprises a grab-bag of "carrots" — the only kind of climate policies that can actually get through Congress.
  • Molchanov states that Clean Energy represents arguably the most straightforward example of how a clean tech company benefits from the Inflation Reduction Act.
  • The analyst notes that Clean Energy is a high-growth story, but it is a commodity business, and its profitability is always highly sensitive to policy incentives — AFTC, RINs, and California LCFS credits –so there is a limit to how lofty a valuation can get.
  • At this point, he believes that valuation is close to fair value — put another way, the trade ran its course, he added.
  • Price Action: CLNE shares are trading lower by 2.19% at $7.82 on the last check Tuesday.
  • Photo Via Company
Market News and Data brought to you by Benzinga APIs
Price Target
Posted In: Analyst ColorNewsDowngradesSmall CapAnalyst RatingsBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!