Renewable Energy Group (REGI US) US
Energy
Compressed stock not earnings - The Street has been infatuated with the rise of soybean oil without giving credit for REGI's ability to quickly switch between feedstocks (which has enabled them to achieve higher gross margins). Following better than expected 1Q results, Hamed Khorsand's bullish thesis remains intact. Having initiated coverage with the shares sub $25, they hit $120 earlier this year - the recent sell-off provides a highly attractive opportunity to purchase shares once again. 12-month TP $100 (80% upside).
Edition: 110
- 14 May, 2021