TD Cowen analyst James Schumm has maintained their bullish stance on PCT stock, giving a Buy rating today.
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James Schumm has given his Buy rating due to a combination of factors that highlight PureCycle Technologies’ growth potential. The company’s recent announcement of a significant capacity expansion plan, aiming for approximately 1 billion pounds, is a key driver of this optimism. This expansion is expected to lead to a surge in orders, which would validate PureCycle’s value proposition and significantly boost revenue growth.
Furthermore, the execution of projects at the Ironton facility, as well as new developments in Thailand and Antwerp, are crucial elements that could enhance the company’s performance. Despite a slight underperformance in the second quarter, PureCycle has maintained a positive outlook for the latter half of the year, with expectations of reaching revenue milestones and achieving corporate EBITDA break-even. The initiation of compounding operations at Ironton by year-end, which is projected to reduce costs, also adds to the positive sentiment, although it introduces some execution risk.
According to TipRanks, Schumm is a 2-star analyst with an average return of 1.3% and a 44.05% success rate.
In another report released today, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $16.00 price target.