Canaccord Genuity analyst John Quealy weighed in with a few insights on Renewable Energy Group Inc (NASDAQ:REGI), after the company reported its fourth-quarter results with earnings of $69.3 million. The analyst maintained a Hold rating and a $11.50 price target on the stock, which represents a potential upside of 25% from where the stock is currently trading.
Quealy noted, “A strong finish to the year, as excellent execution continues the track record of profitable growth despite what we view as very challenging/volatile market conditions in ’14 (regulatory uncertainty, declining energy prices, etc.). Near term, the RVO remains the primary overhang (with potential multi-year resolution serving as a catalyst), while a new buyback supports the current valuation, in our view”
Bottom line, “While we expect shares to remain volatile given the regulatory and commodity-driven economics of the market, we look to get more constructive as the transformation strategy unfolds and underlying earnings power becomes clearer.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Quealy has a total average return of 17.2% and a 51.5% success rate. Quealy has a 63.5% average return when recommending REGI, and is ranked #237 out of 3504 analysts.
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