Send me real-time posts from this site at my email
Motley Fool

Why Renewable Energy Group Stock Is Soaring Today

What happened

Shares of Renewable Energy Group (NASDAQ: REGI) rocketed more than 13% by 11 a.m. EDT on Tuesday. Analysts helped fuel the renewable energy stock by initiating coverage on the company.

So what

Analysts at both Credit Suisse and Truist initiated coverage on Renewable Energy Group today. Credit Suisse started the company with an outperform rating while setting its price target at $51 per share (which implies 35% more upside even after today's rally). Fueling that bullish sentiment is the bank's view that the pure-play biodiesel and renewable diesel producer is in a unique position to benefit as the economy increasingly demands less carbon-intense fuel sources.

Image source: Getty Images.

Meanwhile, Truist also initiated coverage on the biodiesel and renewable diesel producer. The bank rated the stock a buy, based on a similar view of its upside potential as the global economy moves away from dirtier fossil fuels toward cleaner energy sources.

Now what

Renewable Energy Group's clean fuel products are benefiting from a combination of government incentives and a demand shift toward cleaner energy. Those trends enabled the company to report stronger-than-expected earnings last month. That earnings upside appears poised to continue thanks to those dual tailwinds. That makes it an intriguing energy stock for investors looking for ways to play the pivot away from fossil fuel sources.

10 stocks we like better than Renewable Energy Group
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Renewable Energy Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of August 1, 2020

Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Source

Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue