Janney starts LanzaTech with a Buy rating, $10 fair value estimate

As previously reported, Janney Montgomery Scott analyst Thomas Meric initiated coverage of LanzaTech with a Buy rating and $10 price target. The biorefining, or gas fermentation, technology licensing company earns revenue from one-time engineering services for plant construction and ongoing licensing fees for its technology, resulting in high gross margins and low working capital needs, the analyst tells investors. The company, whose balance sheet “remains strong,” has 7 plants operating, 2 under construction, 11 in advanced engineering, 20 in early stage engineering, and 60 at the top of the funnel, the analyst added.