Aug. 4 at 10:31 PM
B. Riley Securities highlighted Cadiz as its top utility-sector opportunity following its 26th Annual Institutional Investor Conference, citing growing demand for water infrastructure and storage projects across the drought-prone western U.S. The firm views companies focused on groundwater management and water transportation as well positioned to benefit from long-term investment in critical water resources.
B. Riley reiterated its Buy rating and
$15 price target on Cadiz, naming it its conference "Best Idea." The firm believes the market is significantly undervaluing the company's asset base and sees a major catalyst in the planned equity financing of Mojave Groundwater Storage Company, which could support up to
$900 million in long-term project debt. Despite the stock falling from around
$4.19 during the conference to roughly
$3.00, B. Riley argues investors have overreacted to criticism surrounding the Mojave Groundwater Bank project.
$CDZI