Enviva plunges after Blue Orca brief report dubs ‘newest ESG farce’ (NYSE:EVA)

Replace 2:45pm: Updates shares, provides Raymond James defending the inventory.

Enviva (NYSE:EVA) -12% in Wednesday’s buying and selling following a destructive report from Blue Orca Capital, which mentioned it’s brief the inventory as a result of “EBITDA is inflated, it would minimize its dividend, and newly found information suggests… the corporate is flagrantly greenwashing its wooden procurement.”

Enviva’s (EVA) claims to be a pure-play ESG firm is “nonsense on all counts,” in keeping with Blue Orca, “a product of deranged European local weather subsidies which incentivize the destruction of American forests in order that European energy firms can test a bureaucratic field.”

The corporate is “a dangerously levered serial capital raiser whose deteriorating money conversion and unprofitability will drain it of money subsequent yr,” Blue Orca mentioned.

Enviva (EVA) did not instantly reply to In search of Alpha e-mail request for touch upon the brief report.

Raymond James analyst Pavel Molchanov mentioned in a notice on Wednesday that that the ecological claims within the brief report are “previous information” and the monetary allegations are “misguided.”

“Blue Orca predicts a dividend minimize, we see no goal, rationale foundation for such a conclusion,” Molchanov, who has an outperform score and $80 value goal on EVA, wrote within the notice.

Enviva (EVA) brief curiosity is 12%.

Enviva (EVA) “faces two essential upcoming checks” – centering round its money conversion charge throughout H2 2022, and its means to proceed accessing exterior capital from debt markets as its bond costs unload much like the panic of 2020 – Daniel Thurecht writes in an evaluation revealed on In search of Alpha.

–With reporting by Josh Fineman