10/28/2010-Barclays Capital (NYSE:BCS) issued a note to clients initiating coverage of Clean Energy Fuels (NASDAQ:CLNE) with an Equal Weight rating and $16 target price.
BarCap analyst Vishal Shah said, "Within the natural gas segment, we initiate coverage on Clean Energy Fuels with a 2-Equal Weight rating and $16 price target. We estimate that natural gas for transportation could reach $250+ billion by 2030 and that the market for natural gas vehicles (NGVs) could be substantial. Natural gas economics are starting to become very compelling, especially in the heavy duty segment where penetration rates are low and growth potential is significant. However, passage of the Nat Gas Act, a key incentive necessary to jumpstart the NGV market, is critical, in our view."
Shah went onto say, "In alternative fuels, we prefer companies with (1) exposure to natural gas, (2) upcoming product or customer ramps and highly visible revenue or profitability roadmaps, and (3) low-risk, less capital-intensive, and well-funded business models. Both A123 Systems and Clean Energy Fuels screen attractively on these characteristics."

Buck