Adams Resources & Energy (AE), mcap=$152m, price $38 vs. $35

Pitch: Crude oil marketing, transportation and storage company positioned to benefit from increased US oil production driven by Ukraine war and US recovery from the pandemic. Pipeline and storage asset acquisitions made during COVID are being turned around and will slowly become contributors to profitability. Prime takeover target by larger peers.

Valuation: AE trades at 3x 2021 and 2x 2022 EBITDA with half of the market cap in net cash.

Exp. gain: 100% to $71/share, assuming 50% EBITDA increase by 2023 and 5x multiple.

Full AE write-up (free guest account required):

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