🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

Analyst sees potential for Neste stock to benefit from future renewable fuel mandates

EditorAhmed Abdulazez Abdulkadir
Published 2024/09/12, 17:20
NESTE
-


On Thursday, Citi adjusted its financial outlook for Neste Oyj, a Finnish oil refining and marketing company. The firm's price target for Neste's shares was lowered to €24.00 from the previous €27.00, while the buy rating for the stock was maintained.


The adjustment follows Neste's announcement of a reduction in its full-year Renewable Products (RP) guidance, which includes both margin and sales volumes. This change is attributed to a weaker performance in the third quarter and the upcoming transition to a new CEO in the following month.


Citi noted that the revised guidance from Neste is likely to prompt significant downward revisions in the consensus estimates. Consequently, Citi has reduced its own forecast for Neste's full-year 2024 earnings per share (EPS) by 60%. Despite the immediate challenges, Citi anticipates a potential tightening in the biofuels market by 2025. This market shift could present a favorable opportunity for Neste if the company can demonstrate improved operational performance in the upcoming quarters.


The analyst from Citi highlighted the importance of the next few quarters for Neste, as the company's ability to showcase enhanced operational delivery is crucial. With renewable fuel mandates expected to increase next year, Neste's positioning in the market could strengthen, thereby enabling the company to capitalize on the anticipated uptick in demand for renewable fuels.


Neste's recent performance has been influenced by the current macroeconomic conditions, which have impacted its Renewable Products segment. As the company prepares for a change in leadership, the market will be watching closely to see how the new CEO will navigate these challenges and steer the company towards growth.


The Finnish company, listed on the Helsinki Stock Exchange as NESTE:FH and over-the-counter in the United States as OTC:NTOIY, specializes in refining and marketing petroleum products with a focus on advanced, cleaner energy solutions. Neste's strategic direction in the coming months will be significant as it adjusts to the evolving energy landscape and regulatory environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.