Clean Energy Fuel 's venture into dairy-based renewable natural gas might just be its saving grace in an industry highly sensitive to interest rates, according to Raymond James. The firm upgraded shares of the renewable energy company to strong buy from outperform, lifting its target price to $6. This implies an anticipated upside of 67% from Monday's close. Shares jumped 8% on Tuesday. Clean Energy Fuels is down 25% so far this year as a range of worries drag renewable energy stocks.
mountain CLNE ytd chart Analyst Pavel Molchanov listed Clean Energy Fuels as the exception to the rule, citing the firm's anticipated ramp-up in the in-house production of dairy-based renewable natural gas, or RNG. Another factor in favor of the stock is the expectation that the Treasury Department will soon issue details around a new tax credit for clean fuel production.