VeraSun Energy initiated with "buy"

08/30/06 - BB&T Capital Markets

NEW YORK, August 30 (newratings.com) - Analyst Heather L Jones of BB&T Capital Markets initiates coverage of VeraSun Energy Corp (VSE) with a "buy" rating. The target price is set to $26.

In a research note published this morning, the analyst mentions that the company is competitively well positioned on account of its sound management and comparatively sizeable scale. Ethanol demand and pricing are expected to continue to be relatively robust going forward, BB&T Capital Markets says. The company is expected to post its FY06 and FY07 EPS above the consensus, the analyst adds.