Pacific Ethanol NASDAQ: PEIX reinvents itself amidst Covid and received attention from a heavy hitter! Wednesday morning, H.C. Wainwright issued a new price target for Pacific Ethanol, a company prior to Covid producing an ethanol additive for fuel, priced at $3 per share. But in a stock report featured by TheFly.com, Wainwright says the stock is now worth more than five times that, the new price target $16 per share.
In the last three weeks, it has definitely been a trader’s dream with Pacific Ethanol, Inc.. The stock has moved more than 100%, while it is also above its 20 Day SMA too. The price fluctuation can be attributed to favorable earnings report and incredible technicals associated with this bullish chart. Couple that with incredible news and the $16 price target by H.C. Wainwright and you may have the perfect trading opportunity.
August 11th the company issued news that captured the attention of Wall Street, “Looking at the second half of the year, we expect Adjusted EBITDA to range between $50 and $70 million, with momentum continuing into 2021,” stated Bryon McGregor, Pacific Ethanol’s CFO. Also, Mike Kandris, Pacific Ethanol’s Co-CEO stated, “Our strong second quarter financial results, including net income of $14.6 million and Adjusted EBITDA of $28.8 million, were driven by our diversified product portfolio and expanded production of high quality alcohol,”
It is clear that the attention that Pacific Ethanol is receiving is justified, with revised earnings estimates and the $16 price target, investors should be keeping a careful eye on this stock. The company’s future is quite favorable; as PEIX has been recognized as a Zacks Rank #2 (Buy), so it is possible that the recent run may be just the start for this Cinderella story.