Hudson Technologies stock upgraded by Canaccord Genuity on pricing strength

Published 31/07/2025, 06:58
Hudson Technologies stock upgraded by Canaccord Genuity on pricing strength

Investing.com - Canaccord Genuity upgraded Hudson (NYSE:HUD) Technologies (NASDAQ:HDSN) from Hold to Buy on Thursday, raising its price target to $10.50 from $6.75. The stock, currently trading at $8.32, appears undervalued according to InvestingPro analysis, with the company showing impressive YTD returns of 49%.

The upgrade comes after Hudson Technologies experienced favorable pricing that drove critical margin expansion in Q2/25, despite lighter volumes than expected. The company maintains strong financial health with a gross profit margin of 24.8% and robust liquidity, as InvestingPro data shows the company’s current ratio at 3.84. The company’s core selling season typically occurs during April-June, but this year temperatures remained low until the latter half of June.

According to Canaccord Genuity, a widespread heatwave bringing record-high temperatures in late June helped drive sales for the refrigerant services company. The National Oceanic and Atmospheric Administration (NOAA) reported that over 100 million people across 726 U.S. counties experienced record-breaking temperatures from June 22-25.

While Canaccord remains cautious about potential EPA or Congressional changes to the AIM Act and Refrigerant Management Rules, it now views the market environment more favorably for Hudson Technologies.

The research firm specifically noted that tariffs and other restrictions on China and Mexico, combined with more restricted supply of hydrofluorocarbons (HFCs), are expected to benefit pricing in the refrigerant market.

In other recent news, Hudson Technologies Inc. reported its second-quarter 2025 earnings, exceeding Wall Street expectations. The company achieved an earnings per share (EPS) of $0.23, surpassing the forecasted $0.16, marking a 43.75% surprise. Hudson Technologies also reported robust revenue of $72.8 million, which exceeded analyst projections. Despite these strong financial results, the company’s stock experienced a decline during regular trading hours. These developments highlight the company’s current financial performance and market reactions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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