HI there,
Greenlane seems well positioned in a shift towards green energy as it is a leading provider of biogas upgrading systems. Many countries are starting to set greenhouse gas emission targets and RNG is a big part of taht. The company is a global leader and just posted strong quarterly results. In fact, it is what led me to taking a speculative position in the company.
In the third quarter, it posted record revenue which say 30% YoY growth to $6.5M and sequentially, revenue jumped 50% QoQ. More impressive, is the company's backlog which stood at $43.8Million as of end of September. It also well positioned to grow that backlog as it has a sales pipeline of approximately $690M. It recently signed an important deal with Bridgemark in Florida and the SWEN Impact Fund which will give it a leg up on Europe. The Bridgemark deal is notable as it counts Chevron as a partner and given its commitment to reducing greenhouse gas emissions, it could be the start of a strategically important relationship.
For such a small company, there are surprisingly 6 analysts that cover the company so interest is high and all six rate it a 'buy' with an average one-year price target of $1.30 per share. Of note, analysts have been revising their price targets upwards after the latest quarter.
Despite a strong showing, this is still a small cap that is going to experience volatility. It is also in overbought territory with a 14-day RSI of 82 - so approach with caution. Long-term, the company stands to benefit from a shift to RNG and so long as it can execute and grow its backlog, the company should perform well.
Mat