What happened
Shares of Gevo (GEVO -2.40%) climbed on Friday, following positive analyst commentary. By the close of trading, the alternative-fuel company's stock was up 14.2%.
So what
H.C. Wainwright analyst Amit Dayal reiterated his buy rating on Gevo's stock and boosted his price forecast from $5 to $18. Dayal's new estimate represents potential gains for investors of roughly 48% from the stock's closing price of $12.17 on Friday.
Gevo's shareholders could be in store for handsome gains, according to an H.C. Wainwright analyst. Image source: Getty Images.
Dayal noted that the cash Gevo raised from its $350 million stock offering in late January will bolster its ability to complete the build-out of its new Net-Zero 1 renewable energy project in South Dakota. Gevo says the hydrocarbon plant will be able to produce 45 million gallons of gasoline and jet fuel annually, in a manner that will have a net-zero greenhouse gas footprint.
Now what
Gevo's shares are up a stunning 192% so far in 2021. Investors have bid up its stock price along with that of other renewable energy companies in hopes that the Biden administration will deliver on its promise to invest heavily in clean energy infrastructure, so as to position the U.S. to achieve net-zero emissions by 2050.
Gevo provides investors with an intriguing way to potentially profit from the rising demand for clean energy. Though with its Net-Zero 1 project still in the early phases of development, Gevo's stock remains a relatively high-risk investment.
