Vertex Energy downgraded to Hold at Craig-Hallum on liquidity concerns

As previously reported last night, Craig-Hallum downgraded Vertex Energy to Hold from Buy with a price target of $1, down from $3, after Q2 EBITDA came in “well below expectations.” Given a challenging crack spread outlook and the transition back to conventional refining from renewable diesel not happening until Q4, the firm sees “substantial uncertainty” as to whether Vertex can successfully navigate its current liquidity challenges. Vertex “missed its window to monetizing” its renewable diesel capabilities and now has limited options to address its heavy debt situation, the analyst tells investors.