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Investing.com - Craig-Hallum initiated coverage on Arq Inc. (NASDAQ:ARQ) with a Buy rating and a $10.00 price target on Tuesday, representing a 63% upside from the current price of $6.13. According to InvestingPro data, analysts maintain a Strong Buy consensus on the stock, with price targets ranging from $8 to $10.
The research firm cited Arq’s transformation into an environmental technology provider and pure-play on activated carbon under new leadership as key factors in its positive outlook.
Craig-Hallum noted that Arq is capitalizing on market demand for technologies that remove impurities for clean air and clean water applications.
The firm highlighted improving financial results for Arq and projected "meaningfully higher" performance with the imminent start-up of GAC (Granular Activated Carbon) production.
Craig-Hallum valued Arq at 8x EBITDA and suggested the stock has potential to reach approximately $25 "over time," according to its research note. The company currently trades at an EV/EBITDA multiple of 27x, with a market capitalization of $259 million.
In other recent news, Arq Inc. reported its financial results for the first quarter of 2025, showing significant growth despite some challenges. The company achieved a revenue of $27.2 million, which exceeded analyst forecasts of $26.73 million, marking a 25% increase from the same period last year. Additionally, Arq Inc. reported a net income of $200,000, a notable improvement from a net loss of $3.4 million in Q1 2024. However, delays in the commercial production of the Granular Activated Carbon (GAC) line have caused some concern among investors. Meanwhile, Canaccord Genuity has revised its price target for Arq Inc. to $8, down from $9, while maintaining a Buy rating. The firm highlighted the company’s potential but called for more evidence to support their positive outlook due to the project delays. These developments indicate a mixed sentiment among investors, who are closely monitoring the company’s ability to meet future expectations.
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