Loading...
Back to narrative

CLNE: South Fork RNG Project And Hydrogen Station Will Drive Future Upside

ESG Trends And Global Mandates Will Boost RNG Uptake

CLNE logo
CLNE
AnalystHighTarget
Not Invested
Published 07 Aug 2025
23 viewsusers have viewed this narrative update

Update shared on 08 Feb 2026

Fair value Increased 6.72%
n/a
n/a
AnalystHighTarget's Fair Value
n/a
Loading
1Y
24.6%
7D
-7.6%

Analysts have lifted their price target on Clean Energy Fuels from US$8.96 to US$9.57, citing updated assumptions around fair value, discount rate, revenue growth, profit margins, and future P/E.

What's in the News

  • Clean Energy Fuels has completed its South Fork Dairy renewable natural gas facility in Dimmitt, Texas, which is now producing pipeline quality RNG and injecting it into the interstate natural gas pipeline (Client Announcements).
  • South Fork Dairy, with a herd of 17,500 dairy cows, has the capability to produce about 2.6 million gallons of low carbon RNG annually by processing up to 300,000 gallons of dairy manure each day through four anaerobic digesters and advanced gas conversion equipment (Client Announcements).
  • The South Fork project, financed entirely by Clean Energy at a total cost of US$85 million, has received full approval from the U.S. EPA to begin generating RINs under the Renewable Fuel Standard. LCFS credit generation in California is expected in First Quarter, 2026 (Client Announcements).
  • Clean Energy was awarded a contract to design and build a new hydrogen fueling station for Gold Coast Transit District in Ventura County, California, including a five year maintenance agreement. The station is intended to support an eventual transition of roughly 70 vehicles to zero emissions by 2040 (Client Announcements).
  • Clean Energy continues to expand its RNG fueling reach through a network of more than 600 stations where RNG is delivered for transportation use. The South Fork output will contribute to this supply (Client Announcements).

Valuation Changes

  • Fair value: revised from US$8.96 to US$9.57, representing a modest upward adjustment in the estimated share value.
  • Discount rate: trimmed from 8.03% to 7.24%, indicating a slightly lower required return in the model.
  • Revenue growth: reset from 25.27% to 8.64%, representing a significant reduction in the growth assumption used in the valuation.
  • Net profit margin: adjusted from 15.01% to 13.15%, reflecting a more conservative view on future profitability levels.
  • Future P/E: increased from 19.60x to 34.17x, implying a higher valuation multiple applied to projected earnings.

Have other thoughts on Clean Energy Fuels?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystHighTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystHighTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.