Please ensure Javascript is enabled for purposes of website accessibility

Why Gevo Stock Surged Today

By Joe Tenebruso - Feb 19, 2021 at 5:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Analysts say the renewable energy specialist has a bright future.

What happened

Shares of Gevo (GEVO -4.10%) climbed on Friday, following positive analyst commentary. By the close of trading, the alternative-fuel company's stock was up 14.2%. 

So what 

H.C. Wainwright analyst Amit Dayal reiterated his buy rating on Gevo's stock and boosted his price forecast from $5 to $18. Dayal's new estimate represents potential gains for investors of roughly 48% from the stock's closing price of $12.17 on Friday.

A digital bull is climbing an upwardly sloping stock chart.

Gevo's shareholders could be in store for handsome gains, according to an H.C. Wainwright analyst. Image source: Getty Images.

Dayal noted that the cash Gevo raised from its $350 million stock offering in late January will bolster its ability to complete the build-out of its new Net-Zero 1 renewable energy project in South Dakota. Gevo says the hydrocarbon plant will be able to produce 45 million gallons of gasoline and jet fuel annually, in a manner that will have a net-zero greenhouse gas footprint. 

Now what

Gevo's shares are up a stunning 192% so far in 2021. Investors have bid up its stock price along with that of other renewable energy companies in hopes that the Biden administration will deliver on its promise to invest heavily in clean energy infrastructure, so as to position the U.S. to achieve net-zero emissions by 2050. 

Gevo provides investors with an intriguing way to potentially profit from the rising demand for clean energy. Though with its Net-Zero 1 project still in the early phases of development, Gevo's stock remains a relatively high-risk investment.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Gevo, Inc. Stock Quote
Gevo, Inc.
$3.74 (-4.10%) $0.16

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.