Aemetis Projects $2 Billion Revenue by 2028, Stonegate Capital Updates Coverage
TL;DR
Aemetis, Inc. plans to reach $2.0B revenue by 2028, presenting a lucrative growth opportunity for investors.
Aemetis' 5-year plan includes increasing revenue from various projects like the Keyes Ethanol Plant and Dairy Biogas Pipeline.
Aemetis' focus on renewable fuels and carbon sequestration contributes to a sustainable future, benefiting the environment and society.
Aemetis secures $3.8B aviation fuel agreements with top airlines, signaling a major shift towards sustainable energy in the industry.
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Stonegate Capital Partners has updated its coverage on Aemetis, Inc. (Nasdaq: AMTX), highlighting the company's ambitious growth plans and recent achievements in the renewable energy sector. Aemetis has set forth a five-year plan to dramatically increase its revenue to $2 billion and adjusted EBITDA to $644 million by 2028, a substantial leap from its fiscal year 2023 figures of $186.7 million in revenue and $(22.4) million in adjusted EBITDA.
The company's growth strategy spans multiple segments, including dairy biogas, renewable jet and diesel fuel production, and ethanol manufacturing. Aemetis has made significant strides in its dairy biogas project, with 9 completed digesters and 10 more fully funded, operating in conjunction with a 40-mile gas pipeline. The company projects this segment alone to generate $190 million in revenue and $122.6 million in adjusted EBITDA by 2028.
In the renewable fuels sector, Aemetis has secured binding supply agreements with 10 airlines, valued at $3.8 billion over 10 years, to provide sustainable aviation fuel. Additionally, a $3.2 billion renewable diesel supply contract has been signed with a national travel stop company. These agreements underscore the growing demand for sustainable fuel alternatives in the transportation industry.
The company's existing 65 million gallon ethanol plant in Keyes, California, is set for upgrades that could significantly reduce natural gas usage and increase cash flow. Meanwhile, Aemetis' biodiesel operations in India show potential for expansion, with capacity expected to reach 100 million gallons by fiscal year 2025.
Stonegate Capital Partners' analysis suggests a valuation range of $15.69 to $22.93 per share for Aemetis, with a midpoint of $18.94, based on projected 2028 EBITDA multiples. This valuation reflects the potential long-term value of Aemetis' diversified renewable energy portfolio.
The company's progress in carbon sequestration efforts, including the approval of 20 years of Low Carbon Fuel Standard mandates by the California Air Resources Board, is expected to further enhance revenue and earnings from its U.S. projects. With several regulatory catalysts anticipated within the next 12 months, Aemetis appears poised for continued growth in the evolving clean energy landscape.
As global efforts to reduce carbon emissions intensify, Aemetis' expansion in sustainable fuel production and carbon reduction technologies positions the company to potentially capitalize on increasing demand for green energy solutions. The success of Aemetis' ambitious plans could have significant implications for the renewable energy sector and contribute to the broader transition towards more sustainable transportation and energy systems.
Curated from Reportable
