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Clean Energy Fuels stock tumbles after analyst turns bearish, citing lack of ‘substance’ in Amazon supply deal

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tumbled 9.6% in morning trading Tuesday, more than erasing the previous session’s rally, after Raymond James analyst Pavel Molchanov turned bearish on the provider of environmentally friendly fuel for the transportation industry, saying investors have gotten “carried away by headlines over substance.” Molchanov downgraded the stock to underperform after being at market performance for the past 14 months. On Monday, the stock soared as much as 26.6% intraday before pulling back to close up just 6.3%, after the company announced
and said it issued Amazon warrants to buy up to 53.1 million shares of common stock, which would represent about 27% of the shares outstanding. Molchanov said the stock’s gain on the news reflected “sentiment-driven multiple expansion with minimal read-through for profitability.” He noted that the supply agreement was for only 46 of Clean Energy’s 565 stations. “A non-exclusive supply deal pertains to 8% of Clean Energy’s stations — is that worth 27% dilution?” Molchanov wrote in a note to clients. The stock has rallied 36.2% year to date, while the Invesco WilderHill Clean Energy ETF

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Tristan McCue is a 26-year-old junior programmer who enjoys reading, binge-watching boxed sets, and appearing in the background on TV. He is smart and friendly, but can also be very evil and a bit lazy.He is an Australian Christian. He has a post-graduate degree in computing.
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