This fund manager loves Anaergia

Stonecastle president Bruce Campbell said Anaergia (Anaergia Stock Quote, Chart, News, Analysts, Financials TSX:ANRG) is beginning to demonstrate the payoff from its multi-year turnaround, citing improving execution, expanding customer relationships, and a recent inflection to profitability.

Speaking on BNN Bloomberg’s Market Call on Jan. 14, Campbell said the organic waste-to-energy company has gained momentum following its recapitalization and strategic refocus, with new contract wins translating into steadily rising revenue.

Campbell pointed to Anaergia’s growing roster of large industrial customers, including Pepsi and NorGas, as a key driver of the company’s improving fundamentals. He said early deployments with global customers create opportunities to expand across broader networks over time, particularly as multinational companies pursue long-term sustainability objectives.

“They have a real formula for what they’re doing, a real expertise…”

“They continue to sign new orders, new contracts,” Campbell said. “They’ve seen a steady ramp up in their revenue, and they just went EBITDA positive in the last quarter, which is significant.”

He added that Anaergia’s current footprint within global customer systems remains relatively small, leaving room for incremental growth as projects scale. Campbell cited Pepsi’s Frito-Lay operations as an example, noting that Anaergia is active at only a limited number of facilities within a much larger global network.

“There’s lots of opportunity, especially when a company like Pepsi wants to be carbon neutral,” he said.

On competition, Campbell acknowledged that the organic waste conversion market includes other players, but said Anaergia’s technical expertise and integrated approach have helped it stand out with larger customers.

“They have a real formula for what they’re doing, a real expertise,” he said, adding that the company is increasingly attracting longer-term contracts from major counterparties.

Anaergia shares have gained 108% over the past 12 months and closed January 15 at $2.44. Of the analysts covering the stock, three rate it Buy, with a consensus target price of $5.13.

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