BofA Securities analyst Conor Fitzpatrick initiated coverage on Calumet, Inc (NASDAQ:CLMT) with a Buy rating and a price forecast of $15.
The analyst noted that Calumet’s Montana Renewables unit is advancing its MaxSAF project to boost sustainable aviation fuel output from ~40 million to over 250 million gallons annually, aiming to tap into stronger pricing and subsidy benefits over renewable diesel and petroleum.
According to Fitzpatrick, the expansion is expected to nearly double EBITDA from 2025 to 2027 and is supported by interest-free DOE loans, reducing execution risk.
Also Read: Why Is Aemetis Stock Trading Higher On Tuesday?
Management plans to monetize the asset to cut debt, which could bring parent leverage below 2.5x through deconsolidation and repayment.
The analyst pointed out that Calumet underperformed during the ramp-up of its biofuels unit, Montana Renewables, due to margin pressure, but recent developments may shift momentum.
Reports suggest that the Environmental Protection Agency is preparing to increase demand for Renewable Identification Numbers, or RINs, beginning in 2026, following lobbying from oil and agricultural interests. Meanwhile, California is in the process of re-approving measures to boost demand for Low Carbon Fuel Standard, or LCFS credits.
Prices for RINs have approximately doubled since December 2024, and the analyst expects them to remain within a favorable range, with some upside potential as regulatory developments advance.
A recovery in demand for LCFS credits is also anticipated, which would support higher margins.
For the investment thesis to materialize, the analyst notes that the company must demonstrate margin recovery in financial performance, achieve meaningful volume growth at MRL, and make tangible progress toward monetizing MRL and reducing overall leverage.
Price Action: CLMT shares are trading higher by 5.84% to $13.89 at the last check on Tuesday.
Read Next:
Cathie Wood Makes Bullish Move On Baidu: Ark Adds 30K+ Shares Amid China-US Trade Thaw
Image by Phongphan via Shutterstock
Latest Ratings for CLMT
Date | Firm | Action | From | To |
|---|---|---|---|---|
Feb 2022 | HC Wainwright & Co. | Maintains | Buy | |
Nov 2021 | Wolfe Research | Upgrades | Peer Perform | Outperform |
Nov 2021 | Cowen & Co. | Upgrades | Market Perform | Outperform |
View More Analyst Ratings for CLMT
View the Latest Analyst Ratings
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
CALUMET (CLMT): Free Stock Analysis Report
This article Calumet Renewables Expansion Is Unlocking Value: Analyst originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
