NEW YORK (TheStreet) -- Shares of Green Plains Inc. (GPRE - Get Report) are up 1.29% to $36.93 in pre-market trading on Monday after Piper Jaffray (PJC) raised its price target to $45 from $36.
Piper said the 15% drop in corn prices over the past 10 days, coupled with ethanol prices remaining relatively stable, will drive expansion in the company's ethanol production margins.
Separately, TheStreet Ratings team rates GREEN PLAINS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GREEN PLAINS INC (GPRE) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 1200.00% and other important driving factors, this stock has surged by 148.61% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GPRE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- GREEN PLAINS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GREEN PLAINS INC increased its bottom line by earning $1.20 versus $0.27 in the prior year. This year, the market expects an improvement in earnings ($3.23 versus $1.20).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 1590.9% when compared to the same quarter one year prior, rising from $2.56 million to $43.20 million.
- GPRE, with its decline in revenue, slightly underperformed the industry average of 3.2%. Since the same quarter one year prior, revenues slightly dropped by 4.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: GPRE Ratings Report