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August 25, 2021
Water Tower Research LLC, the premier investor engagement and stakeholder communication platform powered by Wall Street veterans, has published an updated Initiation of Coverage Report on Gevo, Inc. (NASDAQ: GEVO) titled “Flying High in the New Carbon Economy with Commercial Scale Renewable Jet Fuel and Gasoline.” The report focuses on Gevo’s near-term market opportunity in renewable hydrocarbons, including sustainable aviation fuel (SAF), renewable gasoline, and renewable natural gas (RNG). The report centers around Gevo’s “Net-Zero” concept and illustrates the potential unit economics associated with plants of this type and a potential valuation framework for equity investors.
“Gevo is approaching the tipping point in terms of the commercialization of its renewable hydrocarbon technology. Building off of the Net-Zero concept, the company believes it has a clear pathway to significant cash flow. This is no longer just an idea but is being validated by the company’s inking of $1.6 billion in offtake agreements as part of a $20 billion pipeline of contract negotiations,” said Shawn Severson, Head of ClimateTech & Sustainable Investing at Water Tower Research. “Facilitating even part of this pipeline would require multiple Net-Zero plants with each producing an estimated $150-160 million in EBITDA per year at the plant level based on the company’s current assumptions. This is backed by over $550 million in total cash on the company’s balance sheet.”
The full report can be downloaded HERE.
About Water Tower Research
Water Tower Research is an investor engagement and stakeholder communications platform powered by sector experts with significant Wall Street and industry experience. We create, deliver, and maintain the information flow required by companies to build and preserve relationships with all stakeholders and existing and potential investors. In today’s world of multiple digital communications platforms, it is challenging for companies to consistently engage constructively with investors, customers, suppliers, and employees. Unified messaging and consistent communications with compelling digital content are paramount to achieving that goal. At WTR, our Wall Street veterans and digital strategies provide the foundation for realizing investor relations and communication objectives. “Research for the Other 99%™” opens the door for companies to digitally share their stories directly and engage with a broad, diverse set of investors.
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Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.
At Water Tower Research, we have built a new and innovative platform designed to reach ALL investors using free-to-access modern digital distribution strategies leveraged on the insights from credible and experienced analysts. We focus on identifying key variables and drivers that are impacting companies and then help investors understand said variables with the objective of providing resources needed to make intelligent decisions. With the incumbent equity research model on Wall Street facing unprecedented challenges, we are building a new model to help investors and companies rebuild the information exchange on which fundamental investment strategies are based.
