Raymond James analyst releases initial 2012 earnings estimates for 18 alternative energy stocks
In North Carolina, Raymond James analyst Pavel Molchanov revised 2011 earnings estimates and released initial 2012 earnings estimates for 18 alternative energy stocks under review.
“Biofuels have faced mixed newsflow, with surging feedstock prices eating into margins but the EPA finally allowing higher levels of ethanol blending,” Molchanov writes. “A rather straightforward observation is that the recent jump in crude oil prices carries minimal read-through for most of alt energy, since fuel companies comprise only a small fraction of the overall sector, and so much of [the ECO Index]’s underperformance came during 4Q10….Our sense is that 2011 will be more of the same – that is to say, there will continue to be a vast divergence between the relative winners and losers…Within each subsector – even the narrow “niche” ones, with a handful of public players – we still have to focus on each individual company’s positioning (product mix, margin structure, industry partners, geographic footprint, etc.)”
Category: Fuels
