Please ensure Javascript is enabled for purposes of website accessibility

Why Aemetis Stock Rallied as Much as 17% Today

By Reuben Gregg Brewer - Mar 22, 2021 at 1:23PM

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

Shares of the renewable fuels company got a boost from Wall Street. Here's a quick look at the update that got investors in a buying mood.

What happened

Shares of Aemetis (AMTX 5.79%) were higher by roughly 17% at 1 p.m. EDT. The renewable fuels and biochemicals company didn't release any specific news today that would have elicited such a dramatic rise in price. But a Credit Suisse analyst did.

So what

Manav Gupta of Credit Suisse started coverage of Aemetis with an outperform rating. The stock was given a price target of $35 per share, which is roughly 75% above where the stock closed on March 19, the previous trading day. Investors often buy a stock when it is added to coverage with a favorable rating. The lofty price target probably didn't hurt, either.  

A hand checking a box next to the word Awesome on a list that also includes Poor, Average, Good, and Great.

Image source: Getty Images.

Gupta said Aemetis will benefit materially as the world moves toward a lower carbon future. Specifically, the analyst expects the company to be levered to renewable natural gas growth. Also highlighted was the company's efforts to develop renewable jet and diesel fuels. Clean energy is a hot topic today, so it's not surprising that investors jumped on the analyst update here and bought the stock.  

Now what

There is clearly a huge amount of opportunity as the world tries to find ways to reduce its carbon footprint. Aemetis may or may not end up a big winner. That said, investors have been treated to a massive 3,100% price advance over the past year. In other words, a lot of good news is already priced in. Long-term investors should probably tread with care. Despite the exciting opportunities Credit Suisse is highlighting, stocks that go up impressively sometimes reverse course just as dramatically. 

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

Aemetis, Inc. Stock Quote
Aemetis, Inc.
AMTX
$7.49 (5.79%) $0.41

*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
322%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

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.