Aventine Renewable Energy Holdings 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 Aventine Renewable Energy Holdings (AVR) with a "buy" rating. The target price is set to $36.

In a research note published this morning, the analyst mentions that the company’s large marketing scale, low-cost profile and management represent major competitive advantages. The analyst expects the demand for and pricing of ethanol to remain robust in view of the bullish oil price outlook and political push towards the development and use of alternative fuels. The renewable fuel standard is likely to be raised, maybe significantly, BB&T Capital Markets adds.