Raymond James UpgradeToo many posts to determine whether this has already been posted. GLTA
Touting the potential stemming from the release of its three-year strategic plan, Raymond James analyst David Quezada upgraded Xebec Adsorption Inc. to “outperform” from “market perform.”
“As highlighted at the company’s Investor Day, XBC is targeting a trio of significant energy transition opportunities including RNG, hydrogen, and carbon capture, expected to drive significant growth in coming years with a 40-per-cent projected CAGR [compound annual growth rate] out to 2024 as per the company’s strategic update,” he said. “We also believe management projected confidence with respect to the ramp up of the standardized Biostream RNG upgrading unit —something we consider to be a key driver for the business.”
Mr. Quezada maintained a $3 target, a penny above the consensus, for the Quebec-based company’s shares.
“In recent months, we have noted our concerns on cost inflation and supply chain challenges as Xebec looks to significantly increase Biostream manufacturing volumes and roll out its hydrogen hub strategy,” he said. “That said, we felt management projected confidence on these respective initiatives and believe the company’s new CEO and other key members of senior management are experienced operators able to execute on this strategy. In light of this, as well as the magnitude of the above noted opportunities, which we do not believe are reflected in XBC’s valuation.”