Greenlane Renewables (TSE: GRN) is a provider of biogas upgrading systems. Its systems produce clean, renewable natural gas from organic waste sources such as landfills, wastewater treatment plants, dairy farms, and food waste.
The company recently announced that it received a contract for C$8.7 million for a dairy-manure-to-renewable-natural-gas project in the U.S. What’s interesting about this contract is that it comes from a repeat customer that has awarded Greenlane Renewables three contracts in the past 18 months.
This demonstrates that the customer has had a very positive experience with Greenlane. Indeed, Brad Douville, President and CEO of Greenlane, stated the following, “Greenlane continues to be selected for important RNG projects based not only on the attractiveness of our products but also the commitment of our people to customer service.”
In addition, for a company with a market cap of C$126.5 million and revenue of C$59 million, the size of the contract makes a material impact on the company’s operation. Over the last few years, Greenlane has been growing its revenue by more than 100% each year. This contract win demonstrates that the company is still able to see strong growth, going forward.
Investor Sentiment
Of the 526,583 portfolios tracked by TipRanks, less than 0.1% of them have Greenlane Renewables as a holding. In the past seven days, these holdings increased by 1.7%. The number was even higher in the past 30 days, with a 2.5% increase in holdings. The stock’s sentiment is very positive and above the sector average, as demonstrated in the image below:
Analyst Recommendations
Greenlane Renewables has a Strong Buy consensus rating based on five Buys assigned in the past three months. The average Greenlane Renewables price target of C$2.36 implies 184.3% upside potential.
Final Thoughts
Greenlane Renewables is a fast-growing company that is attracting repeat customers due to its attractive products and customer service. In addition, investors have been increasing their holdings while analysts are very bullish on the stock. For investors that are looking for an interesting under-the-radar stock, Greenlane might be one to consider.
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