What happened Shares of ethanol producer Pacific Ethanol (NASDAQ: PEIX) leapt out of the gate this morning and were up a strong 15% at 11:15 a.m. EDT. You can almost certainly thank the friendly analysts at H.C. Wainwright for that. So what This morning, Wainwright issued a new price target for Pacific Ethanol, a money-losing fuel-additives stock that the analyst had previously valued at a tiny $3 a share. But in a report covered by TheFly.com, Wainwright says the stock is now worth more than five times that at $16. Credit COVID-19 for the change. Last quarter, as demand for ethanol to use in disinfectants and hand sanitizers exploded, Pacific Ethanol reported its first quarterly profit in 3 1/2 years. Wainwright calls the shift from producing ethanol to blend with gasoline, to producing ethanol to kill germs a significant strategy move for the company, and expects Pacific Ethanol to devote roughly one-fifth of future production to this new purpose. Image source: Getty Images. Now what The new and improved business model transforms Pacific Ethanol from a company destined to produce losses ad infinitum, into one with a good chance of posting profitable growth for years to come, and Wainwright isn't alone in holding this view. According to the latest S&P Global Market Intelligence tally, analysts on average predict that 2020 will see the company report its first full-year profit since 2016. And profits could grow more than 350% next year, to as much as $1.18 per share. At barely $5.50 a share today, that makes Pacific Ethanol a bargain. 10 stocks we like better than Pacific EthanolWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Pacific Ethanol wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source