B. Riley starts Montauk Renewables at Neutral on slower growth

B. Riley analyst Ryan Pfingst initiated coverage of Montauk Renewables with a Neutral rating and $6.50 price target. Despite the stock declining 35% year-to-date, Montauk continues to trade at a premium to comps and to the valuation garnered by former peer Archaea Energy when it was acquired by BP in October 2022, the analyst tells investors in a research note. The firm believes the renewable natural gas industry will continue to see tailwinds over the next several years, but is cautious on Montauk shares at current levels given the company’s slower expected growth than peers.