In a report released today, Amit Dayal from H.C. Wainwright maintained a Buy rating on Aemetis (AMTX – Research Report), with a price target of $28.00.
Amit Dayal’s Buy rating for Aemetis (AMTX) is primarily based on a couple of significant achievements by the company. Firstly, Aemetis recently closed a substantial deal involving the sale of $53M in Inflation Reduction Act (IRA) investment tax credits, generated by its subsidiary, Aemetis Biogas LLC. The credits, stemming from various biogas projects, were sold to a corporate buyer. This transaction is believed to be the largest of its kind within the dairy biogas industry, showcasing Aemetis’s potential for generating notable revenues through its renewable energy operations.
Furthermore, Aemetis was awarded a $150M contract to provide approximately 40M gallons of biodiesel to India’s Oil Marketing Companies within a year, starting October 2023. This contract represents two-thirds of the company’s annual production capacity in India, indicating a strong demand for their product. Moreover, India’s National Policy on Biofuels, which mandates a 5% minimum blend of biodiesel by 2030, and prohibits imports, presents a favorable market for Aemetis. Dayal believes these successful developments should boost investor confidence in Aemetis, particularly considering the positive impact they will likely have on the company’s cash flow and its ability to execute its expansion strategies in the renewable diesel and sustainable aviation sectors.
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Aemetis (AMTX) Company Description:
Aemetis, Inc. operates as a renewable fuels and biochemicals company. The firm focuses on the acquisition, development, and commercialization of technologies that replace traditional petroleum-based products by the conversion of ethanol and biodiesel plants into biorefineries. It operates through the North America and India segments. The North America segment comprises of the Keyes Plant in California, the cellulosic ethanol facility in Riverbank, the cluster of biogas digesters on dairies near Keyes, the Goodland Plant, and the research and development facility in Minnesota. The India segment includes the Kakinada plant, administrative offices in Hyderabad, and holding companies in Nevada and Mauritius. Its products include glycerin, ethanol, food and feed, biodiesel, and edible oils. The company was founded by Eric Armstrong McAfee in 2005 and is headquartered in Cupertino, CA.
Read More on AMTX:
- Aemetis receives $53M from sale of IRA investment tax credits
- Aemetis Biogas Receives $53 Million From Sale of IRA Investment Tax Credits
- Aemetis closes $53M sale of IRA tax credits
- Aemetis signs permit for 90M gallon per year SAF, renewable diesel plant
- Aemetis Receives Key Permit for 90 Million Gallon per Year Sustainable Aviation Fuel and Renewable Diesel Plant in California
