UPDATE: Brean Murray Reiterates Buy Rating, Raises PT on Fuel Tech

In a report published Wednesday, Brean Murray, Carret & Co. reiterated its Buy rating on Fuel Tech (NASDAQ: FTEK), and slightly raised its price target from $6.00 to $7.00.

Brean Murray noted, “Though Fuel Tech is now working through uncertainty after the vacating of CSAPR and lower U.S. coal burn, the company remains buoyed by many APC contracts and may see significant catalysts realized in this environment through a stricter MACT and Regional Haze Rule and rising natural gas prices. Fuel Tech's success in the international market has also been exceeding our expectations...We are maintaining our Buy rating on Fuel Tech and revising our target price to $6 from $7. We derive our target price from a detailed earnings model using both a P/E and EV/EBITDA multiples approach. We are using a 13.0x 2013 P/E multiple of our $0.43 EPS estimate, and a 6.0x 2013 EV/EBITDA multiple of our $19 million EBITDA estimate. We are revising our 2013 EPS estimate to $0.43 from $0.49 previously. We are also decreasing our 2013 EBITDA estimate to $19 million from $23 million previously.”

Fuel Tech closed on Tuesday at $4.78.