Renewable Energy advances following new EPA bio-diesel rules

theflyonthewall.com

Renewable Energy Group (REGI), a U.S. producer of bio-diesel products, advanced for a second straight session after the Environmental Protection Agency on Friday established the amount of bio-diesel products required to be included in diesel fuel markets in 2013 at 1.28B gallons. Piper Jaffray analyst Michael Cox stated in a note to investors this morning that this volume mandate, which is up from 1B gallons in 2012, is a significant positive for Renewable Energy shares. Cox wrote that the EPA's delay in formalizing its 2013 target had led investors to question the regulator's commitment and consider if a final ruling may be postponed until after the upcoming presidential election. The ruling finalization helps provide clarity for Renewable Energy and should improve its production margins, and in turn its earnings, according to Piper. The firm reiterated its Overweight rating and $9 price target on shares. In early morning trading, Renewable Energy advanced $1.52, or 24.88%, to $7.63 after gaining about 13% on Friday. Biofuel Energy (BIOF), another U.S. biodiesel producer, moved higher as well, trading up 2.67% to $9.22.

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