Vertex Energy cut to Perform at Oppenheimer on lower spread capture, higher opex

Oppenheimer downgraded Vertex Energy to Perform from Outperform with an unchanged price target of $10 per share. The stock traded down today after the company provided an operational update for Q2 indicating lower crack spread capture and modestly higher opex vs. prior guidance, and the firm is reducing its outlook for conventional refining economics given Q2 results, the analyst tells investors in a research note. Oppenheimer adds that while Vertex Energy has shown ability to adapt to challenging market and operating conditions, it is seeking better clarity around RD economics and feedstock diversification, conventional refining strategy, cash generation profile and capital allocation.