REX: Overreaction To Brazilian Tax Credit News Bares At Least 26% Upside
- Recent news of a Brazilian tax credit for ethanol exporters sent ethanol stocks tumbling, with REX down almost 20%.
- Considering the back-story of this tax credit, I believe the move is more of a political tool than a long-term national strategy.
- REX owns stakes in large plants in the Corn Belt and should be minimally affected by this news.
- Even with a very conservative fundamentals valuation, REX has a 32% upside at current levels by year end.