Vertex Energy Gets Nasdaq Extension to Regain Share Price Compliance; Shares Climb 12%

Vertex Energy on Dec. 31 announced the receipt of formal notification from Nasdaq regarding the grant of an additional 180-day compliance period to regain compliance with the minimum $1 bid price per share requirement. Shares gained 12.4% in after-hours trading on Thursday.

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Shares of the environmental services company last closed at $1 on Mar. 5, 2020.

Vertex Energy (VTNR) would regain compliance with the Rule if at any time, until Jun. 28, 2021, the bid price of its common stock closes at or above $1 per share for a minimum of 10 consecutive trading days.

In reaction to the company’s growth trajectory despite headwinds and strong 3Q20 results, H.C. Wainwright analyst Amit Dayal reiterated a Buy rating on the VTNR stock. Dayal had set a price target of $4 (462% upside potential).

Vertex had a stronger than expected recovery in its business in 3Q20 and came in ahead of Dayal’s projections across all key line items, supported by 36% sequential improvement in used motor oil collections as new customers were added and vehicle miles travelled increased in the quarter.

The recovery in economic activity and steps taken to diversify into new revenue streams, including auto coolants and used oil filters, have positioned the company very well for 2021, with the outlook for volume and spreads into 1Q21 becoming increasingly favorable, according to Dayal. (See VTNR stock analysis on TipRanks)

Dayal projected 2020 topline revenues of $136.8 million and expected them to rise to $348.3 million in 2030, at a 10-year CAGR of 9.8%. He projected the company’s adjusted EBITDA to increase from $14.9 million in 2021 to $41.1 million in 2030, growing at a nine-year CAGR of 12%.