Amit Dayal, an analyst from H.C. Wainwright, maintained the Buy rating on Alto Ingredients (ALTO – Research Report). The associated price target is $5.50.
Amit Dayal has given his Buy rating due to a combination of factors that suggest potential future growth and improved financial stability for Alto Ingredients. Despite the recent financial challenges, including a decline in revenue and a net loss in the fourth quarter of 2024, the company is taking strategic steps to enhance its profitability. These include cost-cutting measures such as reducing headcount and idling certain facilities, which are expected to yield significant annual savings.
Additionally, the acquisition of a liquid CO2 business is anticipated to provide immediate earnings benefits and leverage the capacity of the Columbia plant. The management’s focus on exploring strategic options to unlock shareholder value, coupled with a healthy balance sheet, positions the company well for future growth. Amit Dayal’s projections for 2025 and 2026 indicate an improvement in adjusted EBITDA and a return to profitability, supporting the Buy rating. The stock’s current valuation and future earnings potential make it an attractive investment opportunity, despite the inherent risks associated with commodity and energy prices, as well as regulatory and macroeconomic uncertainties.
Dayal covers the Industrials sector, focusing on stocks such as Ceco Environmental, Plug Power, and Electrovaya. According to TipRanks, Dayal has an average return of -23.7% and a 23.20% success rate on recommended stocks.