Green Plains (GPRE – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Andrew Strelzik from BMO Capital maintained a Hold rating on the stock and has a $8.00 price target.
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Andrew Strelzik has given his Hold rating due to a combination of factors impacting Green Plains’ current financial performance and future outlook. The company’s recent fourth-quarter results were disappointing, with an EBITDA loss that missed forecasts due to lower ethanol margins and operational issues in their Clean Sugar and high protein segments. These challenges were exacerbated by elevated ethanol inventories and a lack of hedges, leading to weaker consolidated crush margins compared to industry peers.
While Green Plains is pursuing cost savings and strategic initiatives, such as carbon capture and improving corn oil profits, the 2025 ethanol outlook remains difficult due to high corn prices, strong production, and uncertain demand. Additionally, the benefits from Clean Sugar and high-protein ventures are developing slower than anticipated. As a result, Strelzik maintains a cautious stance, acknowledging potential long-term opportunities but emphasizing limited visibility into the timing and magnitude of potential profit realization due to execution, market, and policy risks.
According to TipRanks, Strelzik is a 4-star analyst with an average return of 5.8% and a 57.44% success rate. Strelzik covers the Consumer Cyclical sector, focusing on stocks such as Brinker International, Darden Restaurants, and Papa John’s International.