Clean Energy Fuels Downgraded At Raymond James, In Response To Inflation Recovery Act

Raymond James analyst Pavel Molchanov downgraded Clean Energy Fuels Corp CLNE to Market Perform, from Outperform, without a price target.
The analyst talks about The Inflation Reduction Act, which is set to be signed into law this week and comprises a grab-bag of "carrots" — the only kind of climate policies that can actually get through Congress.
Molchanov states that Clean Energy represents arguably the most straightforward example of how a clean tech company benefits from the Inflation Reduction Act.
The analyst notes that Clean Energy is a high-growth story, but it is a commodity business, and its profitability is always highly sensitive to policy incentives — AFTC, RINs, and California LCFS credits –so there is a limit to how lofty a valuation can get.
At this point, he believes that valuation is close to fair value — put another way, the trade ran its course, he added.
Price Action: CLNE shares are trading lower by 2.19% at $7.82 on the last check Tuesday.
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