Top Pick DetailsFirst stock in the clip; his family also owns it in addition to it being in the fund. GLTA
https://www.bnnbloomberg.ca/video/varun-anand-s-top-picks~2393583
Evergen Infrastructure (EVGN CVE) A pure-play renewable energy company focused on renewable natural gas (RNG) infrastructure. The company acquires, develops, builds, owns and operates a portfolio of renewable natural gas projects, primarily in British Colombia.
The RNG space is attractive given the positive impact it has on emissions (converting waste from landfills into natural gas is a carbon neutral event vs. mining for natural gas which increases emissions) and the fact that RNG producers are paid by both their suppliers (landfill owners, municipalities) and customers (utilities).
Landfills account for 15 per cent of global methane emissions, which traps over 80 times more heat in the Earth’s atmosphere than carbon dioxide, making companies like Evergen a key player in reducing global warming.
Utilities are also focused on increasing the amount of RNG in their existing pipelines; Fortis BC is targeting 15 per cent of its natural gas supply to be renewable by 2030 and is a key long-term customer of Evergen.
With existing liquidity and project-level debt, EVGN’s 2023 EBITDA will exceed $10M (up from $3M in 2021), representing a two-year CAGR of 83 per cent. The company currently trades at 4x 2023 EBITDA, a compelling valuation on an absolute basis, and well-below peers.
While the shares will continue to have higher beta and volatility over the short term, we believe the risk/reward is heavily skewed to the upside, and the shares will re-rate as the company hits project milestones and attracts new investors to the shareholder base. Evergen remains one of the best ways for investors to gain exposure to the emerging renewable opportunity in RNG.
TOP PICK
EverGen Infrastructure(EVGN-X)
01/03/2022 at 07:00pm
Key is to reduce emissions but to also use fossil fuels. Pure play, renewable nat gas company. Be aware that this stock will be very volatile, for someone with a higher risk tolerance. Will triple EBITDA by 2023. Cheap, and even more so compared to peers. No dividend. (Analysts’ price target is $10.50)
Varun Anand
$4.150
Owned