Vertex Energy downgraded to Market Perform from Outperform at Northland

Northland analyst Donovan Schafer downgraded Vertex Energy to Market Perform from Outperform with a price target of $2, down from $9.50, following the company’s Q4 operational update. The main operating metrics were “just slightly below prior guidance,” but the stated liquidity of about $80M at quarter-end seems to imply about $55M in cash consumed during in the quarter, which is “alarming” and doesn’t seem to square with reported capex or other metrics reported for the quarter, says the analyst. This was likely a factor in the Fitch downgrade this morning, added the analyst.