Bank of America analyst Salvator Tiano has downgraded Green Plains (GPRE, Financial) from a Buy to a Neutral rating. The price target for the ethanol producer has been significantly lowered from $10 to $4.50.
The analyst cites increased risks linked to a worsening global economic environment and the potential impacts of an emerging trade war as key factors influencing this decision. These concerns are seen as outweighing any anticipated benefits from the company's strategic initiatives.
Despite the downgrade, the analyst maintains a positive view on Green Plains' carbon capture project, noting its potential to be "transformational" for the company. However, several risks could potentially hinder Green Plains' valuation, according to the analyst's assessment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Green Plains Inc (GPRE, Financial) is $11.11 with a high estimate of $25.00 and a low estimate of $6.00. The average target implies an upside of 187.85% from the current price of $3.86. More detailed estimate data can be found on the Green Plains Inc (GPRE) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Green Plains Inc's (GPRE, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Green Plains Inc (GPRE, Financial) in one year is $19.02, suggesting a upside of 392.75% from the current price of $3.86. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Green Plains Inc (GPRE) Summary page.
