Origin Materials Set For Early Profitability, Analyst Highlights Positioning For Long-Term Growth, Upgrades Stock
Portfolio Pulse from Lekha Gupta
Origin Materials, Inc. (NASDAQ:ORGN) shares surged after reporting Q2 financial results. Despite missing earnings and sales estimates, the company secured a 2-year MOU for PET closure production, projected to generate over $100 million in revenue starting in 2025. BofA Securities upgraded ORGN to Buy, raising the price target to $3.00, citing potential profitability as early as 2026 and significant long-term growth potential in its biomass conversion technology.
August 16, 2024 | 5:58 pm
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Origin Materials reported a Q2 loss per share of $0.14, missing estimates, and sales of $7.03 million, below expectations. However, a new 2-year MOU for PET closure production is expected to generate over $100 million in revenue starting in 2025. BofA Securities upgraded ORGN to Buy, raising the price target to $3.00, citing potential profitability as early as 2026 and long-term growth potential in its biomass conversion technology.
Despite missing Q2 estimates, the new MOU and analyst upgrade significantly boost investor confidence. The potential for early profitability and long-term growth in biomass conversion technology are strong positive indicators.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100