Texas Capital Initiates Andersons (ANDE) at Buy, Highlights Exposure to Renewable Feedstocks

The Andersons, Inc. (NASDAQ:ANDE) is included among the 10 Dividend Stocks With Low Payout Ratios and Strong Upside Potential.

Texas Capital Initiates Andersons (ANDE) at Buy, Highlights Exposure to Renewable Feedstocks

On June 18, Texas Capital initiated coverage of The Andersons, Inc. (NASDAQ:ANDE) with a Buy rating. It set a $110 price target on the stock. The analyst said the company offers “differentiated exposure” to the U.S. ethanol and renewable feedstocks industries through its vertically integrated business model. In a research note, the firm added that Andersons is well-positioned to benefit from an “increasingly constructive” macro environment for ethanol.

During the company’s first-quarter 2026 earnings call, CEO, President, and Director William Krueger said the quarter marked a major milestone with the finalization of the largest-ever renewable volume obligations for 2026 and 2027.

Krueger also said construction at the company’s Port of Houston facility was progressing as planned, with full operations expected to begin in the third quarter. He added that the Carlsbad Mineral plant had become operational, while upgrades to increase clean corn capacity at the company’s Mansfield, Illinois, facility were underway.

Executive Vice President and CFO Brian Valentine reported that The Andersons generated net income attributable to the company of $33 million, or $0.97 per diluted share, in the first quarter of 2026. Adjusted net income totaled $38 million, or $1.12 per diluted share.

Valentine also said the company had qualified for the next tier of 45Z tax credits in 2026, as expected, and recognized $26 million of those credits during the first quarter.

The Andersons, Inc. (NASDAQ:ANDE) is a diversified company with Agribusiness and Renewables as its two operating segments. The Agribusiness segment includes commodity merchandising, terminal grain elevator operations, and the manufacturing and distribution of plant nutrient products.

While we acknowledge the risk and potential of ANDE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ANDE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Top 10 Blue Chip Stocks with Growing Dividends and 10 Reliable Dividend Stocks to Buy for Long-Term Investors

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1