New Kid on The BlockHere's a new listing doing similar technolgy to XBC however it has more upside according to analysts expectaions. Comparing the two. ----------------------------------------------------------------------------------------------------------------------------
The Globe and Mail reports in its Thursday, July 7, edition that Canaccord Genuity analyst Yuri Lynk lifted Xebec Adsorption ($4.43) to “buy” from "hold," citing an order this week for one of its products and a share price that has in been in steep decline. The Globe's Darcy Keith writes in the Eye On Equities column that Mr. Lynk raised by $1.50 to $6. Mr. Lynk says, "Having dropped 50 per cent year-to-date, we believe Xebec shares afford investors a favourable reward-to-risk proposition." Xebec announced this week an initial order for 18 of its BGX Biostream units. The systems are for a leading U.S. RNG dairy farm project developer and the associated revenue could be as much as $35-million. Mr. Lynk says the signed agreement has the potential for additional orders and represents the largest unit order Xebec has received to date for its Biostream units. The order "validates this containerized system, which Xebec has been developing for two years. On the hydrogen side, Xebec continues to secure attractive gas-as-a-service on-site generation system wins in the industrial segment. If it can continue to parlay its technology into hydrogen refueling stations we see good valuation upside potential."
Xebec provides innovative solutions which transform raw gases into marketable sources of clean energy. Xebec designs and builds biogas upgrading plants for landfill gas, waste water treatment, anaerobic digester gas and natural gas dryers for the natural gas vehicle market. Part of Xebec’s projects, in California, is the first Dairy Farm in the US to use a Methane Digester to produce Biogas, a compressed natural gas, from cow manure.
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Globe says new coverage rates Anaergia “overweight”
2021-07-15 07:08 ET – In the News
The Globe and Mail reports in its Thursday, July 15, edition that Barclays analyst Moses Sutton commenced coverage on Anaergia ($15.01) with an “overweight” rating and $24 share target. The Globe's Darcy Keith writes in the Eye On Equities column that Scotiabank also began coverage with a “sector outperform” rating and $16.50 share target. Anaergia is a waste-to-energy business, inputting mixed waste streams through a proprietary separation process, then feeding the organics into an anaerobic digester, which outputs renewable natural gas or electricity.
Event We are initiating coverage on Anaergia Inc. with a SPECULATIVE BUY rating and $40.00 target price. A more detailed report will be published later today. Integrated Technology and Product Portfolio to Convert Municipal Waste into RNG: We believe that Anaergia is the unrivalled global leader in extracting organic materials from municipal waste streams (organics extracted from mixed solid waste, wastewater sludge) to convert them into Renewable Natural Gas (RNG). In our view, this feedstock pathway has incredibly attractive long-term tailwinds, including growing regulations that aim to reduce emissions, as well as increasingly stringent regulations that aim to divert waste from landfills. Additionally, the company's primary focus is on municipal waste streams that results in a business model well-suited for large-scale projects, in our opinion.
Notably, Anaergia recently completed the construction of the largest diverted organics RNG facility in North America. Shifting to a Build Own Operate (BOO) Model: In conjunction with the IPO, the company is shifting to a growing BOO infrastructure model in order to scale the business and take advantage of a very lucrative regulatory environment.
The company has articulated a five-year, $1 billion capital program with a 30% equity and 70% debt project-level financing structure, and we calculate that the IPO proceeds of $175 million will allow the company to fund projects well beyond the eight identified projects currently under construction or with contracted terms.
TD Investment Conclusion In our view, Anaergia's broad intellectual property portfolio, strategic focus on municipal waste, and the pursuit of a growth-focused infrastructure model make it a high-quality option in the RNG and low-carbon fuels investable universe. Despite our view that Anaergia possesses high-quality attributes, the stock is trading at an EV/EBITDAS discount to other companies in the RNG sector. Our primary valuation methodology utilizes a 10-year DCF calculation, resulting in a $40.00 target price, representing meaningful upside from its current valuation. As a result, we are initiating coverage on Anaergia with a SPECULATIVE BUY rating. Although we have initiated coverage with a SPECULATIVE risk rating, we believe that Anaergia features a significantly lower risk profile and the most commercial-ready business model of the three companies in our clean-tech coverage universe and would look to revisit our risk rating if our estimates are met.