Canaccord Genuity analyst George Gianarikas maintained a Buy rating on Arq Inc (ARQ – Research Report) yesterday and set a price target of $8.00.
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George Gianarikas has given his Buy rating due to a combination of factors, despite some setbacks in Arq Inc’s transition process. The company is experiencing delays in the commissioning of its GAC Facility, pushing the expected completion to mid-2025. However, Arq’s traditional PAC business continues to show robust performance, with consistent double-digit annual ASP growth and renegotiated contracts that have eliminated negative margins.
Additionally, regulatory developments appear favorable, as the EPA is maintaining its stance on PFAS remediation rules, which could benefit Arq in the long run. Although the delay in the GAC transition is a concern, the company’s solid fundamentals and potential regulatory tailwinds support a positive outlook. Therefore, while the price target has been adjusted from $9 to $8, the Buy rating is maintained, reflecting optimism in Arq’s strategic transition and future growth prospects.
ARQ’s price has also changed dramatically for the past six months – from $6.720 to $3.685, which is a -45.16% drop .