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Oppenheimer upgrades Vertex Energy to Outperform following Q4 beat

As previously reported, Oppenheimer analyst Noah Kaye upgraded Vertex Energy to Outperform from Perform with a $14 price target. The firm notes shares rallied strongly Tuesday after the company beat Q4 top/bottom-line consensus estimates and reiterated timetables for the RD conversion at Mobile. The uplift in refinery yields appears structural, supporting positive revision to Oppenheimer’s full year 2023 conventional fuels production estimates, and reflects benefits of operational improvements taken in prior quarters. While the firm continues to see commodity and execution risks on both conventional and RD operations, it believes Vertex Energy is demonstrating improved operating discipline and adding value to the business via process improvements and efficient portfolio management.

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