- Clean Energy Fuels (CLNE -8.5%) is added to Piper Jaffray's Top Picks List as a Sell with a new $4.50 price target, cut from $9.50, saying trucking companies overwhelmingly prefer a type of natural gas CLNE doesn't sell.
- The firm's channel checks indicate that more than 90% of engines emerging from the Cummins-Westport (CMI; WPRT) joint venture are opting for compressed natural gas, which fleets can obtain for $1.50/gallon, instead of liquefied natural gas, which CLNE sells for at least $2.75/gallon.
- Also, the firm estimates CLNE will sell only 15M gallons of its Redeem fuel made from landfill gas next year; since CLNE will sell ~299M gallons of fuel in 2014, Redeem will not have a major impact on overall profit margins.
Clean Energy sinks after Piper Jaffray labels it a top sell
Oct 8 2013, 12:58 ET