Cowen initiates coverage on Gevo with Neutral rating: “We like it L-T, but await a better entry point.”

In Colorado, Cowen & Company initiated coverage on Gevo with a neutral rating.

Analysts Rob Stone and James Medvedeff write: “GEVO proprietary technology converts ethanol (ETOH) plants to make isobutanol (IBOH), which has superior characteristics and commands a higher price. Fermentation targets have been achieved; retrofits are underway with firm offtake. A JV model during proof of concept could be followed by licensing.

“We like it L-T, but await a better entry point, because likely plant 2 startup timing implies 2013 St. consensus is too high.”

Their full coverage note is available here.