Opal Fuels (OPAL, Financial) has received a downgrade from analyst Martin Malloy at Johnson Rice, shifting the stock's rating from Buy to Hold. Accompanying this change, Malloy has set a new price target of $3 for OPAL.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for OPAL Fuels Inc (OPAL, Financial) is $4.31 with a high estimate of $7.00 and a low estimate of $2.00. The average target implies an upside of 67.48% from the current price of $2.58. More detailed estimate data can be found on the OPAL Fuels Inc (OPAL) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, OPAL Fuels Inc's (OPAL, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for OPAL Fuels Inc (OPAL, Financial) in one year is $9.19, suggesting a upside of 256.89% from the current price of $2.575. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the OPAL Fuels Inc (OPAL) Summary page.
OPAL Key Business Developments
Release Date: May 09, 2025
- Revenue: $85.4 million for Q1 2025, up from $64.9 million in Q1 2024.
- Adjusted EBITDA: $20.1 million, over 30% higher compared to the same period last year.
- Net Income: $1.3 million, up from $0.7 million in Q1 2024.
- Fuel Station Services Segment EBITDA: Approximately $12.5 million, 80% higher versus Q1 2024.
- RNG Fuel Production: 1.1 million MBTUs, up nearly 40% versus the same period last year.
- Capital Expenditures: $17 million for the quarter.
- Total Liquidity: $240 million as of March 31, 2025.
- Guidance for 2025 Adjusted EBITDA: Between $90 million and $110 million.
- Guidance for 2025 RNG Production: 5.0 million to 5.4 million MMBTUs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- First quarter adjusted EBITDA was $20.1 million, over 30% higher compared to the same period last year.
- RNG fuel production for the quarter was 1.1 million MBTUs, up nearly 40% versus the same period last year.
- The Fuel Station Services segment exhibited strong growth with EBITDA approximately $12.5 million, 80% higher than the first quarter of 2024.
- OPAL Fuels is maintaining its full-year guidance and expects sequential quarterly RNG production growth throughout the year.
- The company has a strong liquidity position with $240 million in total liquidity, including cash equivalents and undrawn credit facilities.
Negative Points
- Uncertain macro and regulatory environments are causing delays in investment decisions among customers and partners.
- There is a lack of acceleration in CNG, RNG adoption for heavy-duty trucking despite positive long-term factors.
- The company is waiting for regulatory clarity on RNG fuel segment policies, including the implementation of 45Z and EPA rulings.
- Equity method investments' adjusted EBITDA decreased year-over-year due to timing of sales and startup expenses.
- Renewable power segment revenues were down significantly due to the termination of ISCC pathway contracts.
