Shares of Clean Energy Fuels (CLNE) soared Wednesday after the natural gas marketer and retailer received an initial rating of outperform with a price target of $17 from Credit Suisse.
That’s the highest estimate for the stock on Wall Street, according to Bloomberg. Shares recently traded at $12.52, up 19.58%, and have skyrocketed 401% in the last three months amid investor enthusiasm for clean energy stocks. Clean Energy Fuels builds and supplies renewable natural gas fueling stations.
Credit Suisse analyst Manav Gupta is impressed with the joint venture Clean Energy signed with oil titan BP (BP) in December and thinks it can take advantage of the growth in renewable natural gas supply, Bloomberg reports.
“We believe no other company besides CLNE has the existing fueling infrastructure across the entire U.S. to support wider and growing adoption of renewable natural gas,” Gupta wrote. And the company should draw the interest of investors concerned with environmental, social and corporate governance issues, according to Gupta.
Clean Energy Fuels rose with other clean energy stocks in December, boosted by provisions in the $900 billion stimulus package that included extensions of the solar and wind production tax credit.
The package included a $35.2 billion stipulation for alternative fuels and new energy technologies. Morgan Stanley analyst Stephen Byrd said the legislation provides “high level potential benefits to growth for renewable energy."
And now President Biden and Democrats in Congress are working on a $1.9 trillion stimulus package that could include additional incentives for clean energy, as Biden has made his enthusiasm for the space clear.