Analista Rebaixa Pacific Etanol (PEIX)

Shares of Pacific Ethanol Inc. dropped 81 cents in midday trading Thursday after a Bank of America Securities analyst downgraded the stock from "neutral" to "sell."

Eric Brown downgraded the stock, along with other ethanol producers before trading opened, saying increased production and higher corn prices would hurt profits, according to news reports. Brown issued a report saying he expects ethanol production to increase by one billion barrels per quarter for the next six quarters, which will reduce prices and decrease the price of distillers grains, an ethanol production byproduct sold and used in animal feed.


The analyst cut his share price target on Pacific Ethanol to $11 from $14.

Sacramento-based Pacific Ethanol (Nasdaq: PEIX) is building plants in California, Idaho and Oregon. Shares were trading at $13.36 on Thursday.

http://phoenix.bizjournals.com/sacramento/stories/2007/05/28/daily24.html