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Gevo stock climbs after bullish analyst note from Noble

Analyst Poe Fratt believes there is a huge opening in the market for the company's sustainable fuels

Grass growing in shape of fuel pump
Noble Capital initiated an Outperform rating and a $3 price target

Gevo Inc (NASDAQ:GEVO) shares got a bounce Thursday after analysts at Noble Capital Markets initiated coverage of the low carbon fuel company with an Outperform rating and a $3 price target. 

Analyst Poe Fratt believes there is a huge opening in the market for the company's sustainable fuels. In particular, he noted a recent deal made with three dairies, which agreed to provide manure that Gevo will turn into natural gas.

Fratt also had positive things to say about the company's development of low carbon ethanol.

“There is a clear fairway to producing ethanol with a lower carbon footprint and shifting toward renewable transportation fuels with lower carbon footprints,” Noble wrote.

Gevo stock jumped 4.1% to $2.18 on Thursday.

READ: Gevo receives certification from Roundtable on Sustainable Biomaterials

On the transportation front, Gevo has been making deals to supply its sustainable aviation fuel to the airline industry. In December, the company inked a deal with Delta Air Lines Inc (NYSE:DAL) to supply 10 million gallons per year. 

With the Delta deal under its belt, Gevo’s total contract profile sits at 17 million gallons. As that continues to expand, Noble wrote, the company should be able to move forward with project financing proposals.

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

Quick facts: Gevo Inc

Price: 0.7451 USD

NASDAQ:GEVO
Market: NASDAQ
Market Cap: $10.89 m
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