Pacific Ethanol, Inc. (NASDAQ: PEIX) saw a 3.76% increase in its stock price on Tuesday after the equity research analyst at BWS Financial has initiated the coverage on shares of Pacific Ethanol. BWS Financial has set the ‘buy’ rating and a price target of $20.50. Various other firms have also changed the rating for the stock of Pacific Ethanol.
Previously, Zack Investment Research has changed the rating from ‘buy’ to ‘hold’ and downgraded the shares of Pacific Ethanol. While HC Wainwright has issued a new price target for Pacific Ethanol. HC Wainwright has raised the price target from $3 to $16.00 and reiterated its Buy rating on September 16.
Pacific Ethanol stock saw a surge in its share price thanks to the new price target of HC Wainwright. The analyst believes that its stocks now worth more than five times that at $16. It is not wrong to say that the strong performance credit goes to the COVID-19 Pandemic. In the last quarter, the demand for ethanol to use in disinfectants and hand sanitizer soared because of the novel coronavirus.
Wainwright states that the shift from producing ethanol to blend with gasoline and producing ethanol to kill germs is considered to be a useful move for the company. Analysts anticipate that Pacific Ethanol would devote roughly one-fifth of future production to this new purpose.
Shares of Pacific Ethanol traded up 3.76% as it gained +0.29 during the trading session of Tuesday. It has a closing price of $8.00. In the past 52-weeks of trading, this company’s stock fluctuated between the low range of $0.22 and a high range of $7.84. It has moved up 3536.36% and 2.11% from its 52-weeks low and high, respectively. Looking at its liquidity it has a current ratio of 0.90. This company’s market capitalization has remained high, hitting $391.68 million at the time of writing.
The new business model and strategies of the company will further increase the performance of the company and proven to be useful for the company in the coming years. Wainwright is not alone in this view. The latest S&P Global Market Intelligence report has revealed that analysts on average believe that the company will experience a full year of growth since 2016. Analysts believe that the profit of the company could grow more than 350% next year.