Montauk Renewables upgraded at Scotiabank after ‘market overreaction’

As previously reported, Scotiabank upgraded Montauk Renewables to Outperform from Sector Perform with a $9 price target after the stock “cratered” by nearly 37% on Friday following “slightly weaker” Q3 earnings and a “mildly softer” outlook for the remainder of the year. This “market overreaction” wiped out the company’s premium to other RNG peers and the stock looks attractive at these levels given the firm’s belief that there was not a fundamental change and the magnitude of the stock reaction is “not justified” relative to the only modestly lowered outlook and Q3 results impacted by one-off items, the analyst tells investors.