Shares of Origin Materials (NASDAQ:ORGN) continued their plunge for the second day after announcing delays and increased costs for its second plant. This adjustment didn’t go unnoticed; Bank of America promptly shifted its rating from Buy to Neutral, setting a cautious $2 price target. Their analyst, Steve Byrne, cited concerns over escalating funding risks and a potential postponement of profit expectations as reasons for the downgrade.
Byrne also emphasized that Origin’s capital expenditures for their second plant have essentially tripled, leading to reduced profit projections. His forecast for FY 2032 EBITDA took a significant hit, dropping to an estimated $300M from a previous optimistic projection of over $500M by 2030. Additionally, concerns over financing without further dilution have intensified with the company’s looming external funding requirements amounting to around $2.15B for two of its plants.
A look at the past five trading days for ORGN stock highlights the level of impact today’s news had on it. Indeed, shares plummeted over 16% at the time of writing. As a result, investors are now down 72.56% during this timeframe.
