PureCycle stock rating reiterated at Overweight by Cantor Fitzgerald

Cantor Fitzgerald has reiterated its Overweight rating and $12.00 price target on PureCycle Technologies (NASDAQ:PCT), with the stock currently trading at $11.34. According to InvestingPro data, PCT has delivered an impressive 98% return over the past year. The firm noted it has received numerous investor inquiries about the company in recent weeks.

The investor questions have primarily focused on PureCycle’s progress at its Ironton facility, initial compounding rate modeling and revenue contributions, feedback from ongoing customer trials, and the ramp-up of its second production facility in Augusta. With a market capitalization of $2 billion and current ratio of 0.55, InvestingPro analysis indicates the company’s short-term obligations exceed its liquid assets.

PureCycle is currently engaged in more than 30 customer trials as of the first quarter, according to Cantor Fitzgerald’s report. The firm maintains a bullish long-term outlook on the company, with its investment thesis remaining unchanged.

Cantor Fitzgerald believes PureCycle benefits from patented and exclusive technology through Procter & Gamble (NYSE:PG), first-mover advantage in a market with a large total addressable market (TAM), and scaling capabilities.

The research firm’s maintained Overweight rating comes as PureCycle continues its efforts to expand production capabilities across multiple facilities while advancing its recycling technology commercialization.

In other recent news, PureCycle Technologies has reported its first-ever revenue, marking a significant milestone for the company. During the first quarter, PureCycle produced 4.3 million pounds of resin at its Ironton facility and maintained approximately 14 million pounds of inventory, demonstrating operational improvements with an on-stream time of nearly 90% in April. Cantor Fitzgerald analysts reiterated their Overweight rating on PureCycle, maintaining a $12.00 price target, despite a previous adjustment from $14.00. The firm remains optimistic about PureCycle’s prospects, citing its patented technology and early market entry as competitive advantages.

PureCycle is actively engaged in over 30 customer trials, with 24 in the industrial stage, which analysts believe could lead to substantial sales volumes. The company is also expanding into a new facility in Georgia, expected to become operational by fiscal year 2027, and plans to scale its capacity significantly. PureCycle is targeting a revenue ramp-up in the second half of 2025 and aims to reach breakeven at its Ironton facility by the third quarter of 2025. The company has raised nearly $55 million through private stock placements and revenue bonds, with $37.5 million cash on hand, including $22.5 million unrestricted. These developments underscore PureCycle’s strategic direction and operational improvements, contributing to positive investor sentiment.

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