Northland Initiates Coverage on PureCycle (PCT) at Outperform Amid Expansion Plans

PureCycle Technologies Inc. (NASDAQ:PCT) is one of the most shorted stocks right now. On August 27, Jeff Grampp, an analyst at Northland, initiated coverage of PureCycle Technologies Inc. (NASDAQ:PCT) with an Outperform rating and a price target of $16.

Grampp has a bullish view, believing the company is well-positioned to be a leader in the polypropylene recycling industry. He based his argument on PureCycle Technologies Inc.’s (NASDAQ:PCT) recent $300 million fundraising round, which the company plans to use to expedite its expansion.

Northland Initiates Coverage on PureCycle (PCT) at Outperform Amid Expansion Plans

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In its second-quarter update on August 7, PureCycle Technologies Inc. (NASDAQ:PCT) highlighted that it is well-set to achieve 1.0 billion pounds of installed capacity and $600 million in EBITDA per year by 2030. Its efforts to operationalize the Thailand facility are on track, and it expects the facility to be operational by the third quarter of 2027. For its Antwerp plant in Belgium, the company is planning to bring the capacity online by the third quarter of 2028.

Following the update, TD Cowen analyst James Schumm had also maintained his bullish view with a Buy rating and increased his price target on PureCycle Technologies Inc. (NASDAQ:PCT) to $16 from $13. The analyst cited the freshly announced billion-pound capacity plan as the reason for the increased estimates and target. He believed that a surge in larger orders would drive rapid revenue growth for the company, leading to substantial value creation for investors.

PureCycle Technologies Inc. (NASDAQ:PCT) is a recycling and sustainability company that develops processes to convert waste polypropylene into high-quality recycled resin.

While we acknowledge the potential of PCT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PCT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.