Stock Analysis & Ideas

There’s an Opportunity Brewing in Gevo Stock, Says Analyst

Gevo (GEVO) is a company intent on being a market leader in renewable fuels, and it took another step towards that goal on Wednesday. The renewable fuel start-up disclosed that it had entered into an agreement with Aer Lingus.

Across 5 years, Gevo will supply the Irish flag carrier with 6.3 million gallons per year of sustainable aviation fuel (SAF). Deliveries are expected to begin in 2026, and the company anticipates that over the life of the contract, the signed agreement will result in revenue of $173 million (inclusive of environmental benefits).

Gevo plans to continue working toward achieving its stated objective of generating and commercializing 1 billion gallons of SAF by 2030. By expanding its network of airline partners, the agreement with Aer Lingus further boosts Gevo’s global impact.

The company also stated that given its fuel is “fungible and drop-in ready,” It is anticipated to have an immediate effect in assisting their partner airlines reach their sustainability goals ahead of schedule.

Following the news, Stifel analyst Derrick Whitfield reiterated a Buy rating on GEVO shares along with an $11 price target, suggesting room for huge 360% upside over the coming year. (To watch Whitfield’s track record, click here)

Evidently, Whitefield is bullish on the company’s prospects, reaffirmed by a highly positive write-up: “We are constructive on the technical leadership and capability of management, the company’s impressive demand pipeline for its Net Zero concept and the stock’s differentiated exposure to sustainable aviation fuel (SAF) production,” the analyst said. “The company’s recent decision to diversify its opportunity set with ethanol-to-jet agreements and a cellulosic sugar feedstock opportunity further highlights Gevo’s differentiated technical ability to produce renewable hydrocarbons. Net-net, Gevo is a leader in the alcohol to jet (ATJ) pathway, a pathway that is advantaged in the production of SAF, which we view as the future of the RD/SAF sector.”

Gevo might not be the recipient of heavy coverage but those who do follow it are highly positive. The stock boasts a Strong Buy consensus rating, based on a unanimous 3 Buys. Moreover, Whitefield’s price objective appears conservative when pitted against his colleagues’ expectations; the forecast calls for one-year gains of 545%, considering the average target stands at $15. (See Gevo stock forecast on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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