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Investing.com - ATB Capital Markets upgraded Questor Technology (OTCBB:QST) from Sector Perform to Speculative Buy and raised its price target to $0.85 from $0.45 on Tuesday. According to InvestingPro data, the stock appears undervalued at its current price of $0.42, with a "GOOD" overall financial health score.
The upgrade follows Questor’s strong Q2 2025 results reported on August 28, which showed revenue of $3.0 million and adjusted EBITDAS of $0.9 million, exceeding ATB Capital’s estimates of $2.2 million and $0.5 million respectively. The company’s impressive 75% year-over-year revenue growth and healthy balance sheet, with a current ratio of 4.38 and minimal debt-to-equity of 0.05, support the positive outlook.
Questor shares have risen 35% since the earnings announcement, which reflected the company’s highest quarterly revenue since Q1 2020, driven by deliveries for multiple international orders signed in recent quarters.
ATB Capital highlighted Questor’s new rental operations in Mexico as a potential growth catalyst, noting the company has deployed six Q5000 incinerators on a long-term contract with potential for six more units in Q4 2025 and up to 50 units by year-end 2026.
The research firm increased its adjusted EBITDAS estimates for Questor by 213% for 2026 and 265% for 2027, while acknowledging the "somewhat speculative" nature of the opportunity that "will hinge on its ability to execute on initial deployments and to sign additional contracts."
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