Citigroup Stock- Renewable Energy Rises After Citi Buy Rating By Fintech Zoom
By Christiana Sciaudone
Fintech Zoom — Renewable Energy Group (NASDAQ:) rose almost 5% after getting a buy rating from Citi.
The firm initiated coverage on the stock with a price target of $90. The company is a producer of biomass-based diesel in North America.
“REG is a biofuels pure-play with ambition to step-change its margin structure upward through the planned RD expansion at its Geismar, Louisiana plant,” Citi wrote in a note according to StreetInsider.
The firm sees a 30% internal rate of return on the project. Return on invested capital should double to 32%. Intermediate-term, there is margin compression risk in the existing business, but this seems more than partly reflected in its valuation.
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