Street Calls of the Week
Investing.com - Canaccord Genuity maintained its Buy rating and $10.50 price target on Hudson Technologies (NASDAQ:HDSN) following a significant contract renewal. The company has demonstrated strong momentum, with a remarkable 52% price return over the past six months, according to InvestingPro data.
The five-year, $210 million Indefinite Delivery/Indefinite Quantity (IDIQ) contract renewal could generate up to $42 million in average annual revenue for Hudson over the agreement period, according to Canaccord.
This contract provides a substantial buffer to overall sales, considering Hudson’s approximately $225 million in trailing twelve-month revenues, and suggests a stable partnership with the Defense Logistics Agency (DLA) that may extend beyond the current five-year term.
Canaccord noted this DLA program serves as a revenue anchor less exposed to consumer and commercial demand fluctuations for refrigerants during the annual cooling season.
The firm also expects near-term refrigerant pricing tailwinds due to restricted supply of virgin HFC production under the AIM Act and tariff-related price increases, which should benefit Hudson’s reclamation and distribution revenues and gross margins over the next few years.
In other recent news, Hudson Technologies has secured a $210 million contract with the United States Defense Logistics Agency for a five-year base period. This contract renewal positions Hudson Technologies as the prime contractor for managing and supplying refrigerants and related items to U.S. Military Commands and Federal civilian agencies. Additionally, Hudson Technologies has partnered with DC Sustainable Energy Utility to launch a Refrigerant Recovery and Reclamation Pilot program, focusing on reducing greenhouse gas emissions. In a separate development, Hudson Acquisition I Corp. announced that its shareholders have approved an extension for the deadline to complete a business combination, now extended up to July 18, 2026. This amendment also removes the requirement for monthly deposits into the company’s trust account during the extension period. Meanwhile, HIVE Digital Technologies reported a 138% year-over-year increase in Bitcoin production for September, mining 267 Bitcoin compared to 112 in the same month last year. These developments reflect a series of strategic moves and initiatives by Hudson Technologies and HIVE Digital Technologies, highlighting their ongoing efforts in their respective industries.
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