Updated: June 18, 2025
(NEW YORK)--Ludlow Research upgrades its coverage on Safe & Green Holdings Corp. (NASDAQ: SGBX), a leading developer, designer, and fabricator of modular structures, with a short-term price target of $2.50+.
The company entered into a merger with New Asia Holdings, which owns Olenox Corp. and Machfu.com, innovative leaders in the energy and industrial IoT sectors. Machfu's flagship MachGateway® and Edge-to-Enterprise™ software solutions have over 20,000 gateways deployed worldwide, enhancing operational efficiency, predictive maintenance, and real-time analytics across multiple industries including oil & gas, utilities, and manufacturing.
Oil Asset Acquisition
On May 29, 2025, the company announced the acquisition of certain assets of Sherman Oil Company, LLC and several that total 1,600 acres of oil wells and leases.
Mike McLaren, the CEO of Safe and Green commented, “We continue to strengthen our portfolio of oil and gas assets as we endeavor to grow into a diversified oil producer and provider of services to the oil and gas industry. The acquisition of Sherman Oil and their partners adds 111 additional wells to the existing Olenox assets. Of these new wells, only 10% are currently actively producing. By using our Olenox technology and expertise in well revitalization, we expect to ramp production rapidly to 75+ barrels per day within the next four months through a series of cleanouts and restimulations of wellbores.
Oil Prices
As geopolitical events unfold in the Middle East the risk for an oil supply shock puts SGBX on watch. Any increased tensions between the US and Iran could have the potential to send SGBX running, similar to Houston American Energy (NYSE:HUSA), Indonesia Energy (NYSE:INDO), and ROBIN ENERGY (NASDAQ:RBNE).
Valuation Target
As of June 12, 2025, the company had around 10 million shares issued and outstanding. based on growing geopolitical events, and high short interest in the stock, we feel a $25 million valuation for their expanding oil and energy assets to be conservative, which based on this formula, would equate to around $2.50+ per share.
About Safe and Green Holdings
Safe & Green Holdings Corp., a leading modular solutions company, operates under core capabilities which include the development, design, and fabrication of modular structures, meeting the demand for safe and green solutions across various industries. The firm supports third-party and in-house developers, architects, builders, and owners in achieving faster execution, greener construction, and buildings of higher value. For more information, visit https://www.safeandgreenholdings.com
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