Northland Reaffirms Outperform Rating for PureCycle Technologies (PCT)

PureCycle Technologies Inc. (NASDAQ:PCT) is one of the 15 most promising small-cap industrial stocks under $10.

On June 12, the price target on PureCycle Technologies Inc. (NASDAQ:PCT) was reduced from $14 to $13 by Northland. The firm maintained an Outperform rating on the stock after factoring in the current week’s $395M in capital raises into its estimates.

Dmitry Kalinovsky/Shutterstock.com

According to the firm, PureCycle appears to be exhibiting decent progress with four back-to-back quarters of impressive revenue growth, and the firm anticipates an increased growth momentum in the latter half of the year.

On June 11, PureCycle Technologies Inc. (NASDAQ:PCT) announced the pricing of its previously announced underwritten public offerings, comprising 17,661,388 shares of ordinary stock priced at $8.21 per share. It involves a total principal amount of $250 million of 4.75% convertible senior notes scheduled to expire in 2032.

The total capital raised from the offers is anticipated to be around $395 million. Additionally, the company gave the underwriters of the notes offering a 30-day option to buy up to an additional $37.5 million in principal notes to wrap over-allotments. Besides that, the underwriters of the common stock offering will also have a 30-day option to buy as many as 2,283,800 more shares of common stock.

PureCycle Technologies Inc. (NASDAQ:PCT) uses its patented solvent-based purification technology to recycle waste polypropylene into recycled resin. This technology allows them to separate color, odor, and other contaminants from the plastic waste, making it a renewable source for companies.

While we acknowledge the risk and potential of PCT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PCT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1