PureCycle Technologies (PCT) Stock Forecast & Price Target

PureCycle Technologies Inc has revised its future gross margin estimates for FY26 and FY27 to 25% and 30%, respectively, an increase from prior estimates of 15% and 22%. The company's expansion into Thailand is expected to enhance unit economics due to lower production and labor costs in the region, further strengthening its operational efficiency. Additionally, the growth projections for UPR resin sales have been adjusted upward for FY25 and FY26 to 24.5 million and 91.1 million pounds, respectively, culminating in estimated revenues of $33.5 million and $123.9 million, reflecting increases from previous estimates.

PureCycle Technologies Inc has been facing significant challenges, including high operational costs and delays in ramping up production of its patented recycling technology. The company's financial performance has been adversely affected by these factors, leading to a lower-than-expected revenue growth trajectory and rising expenses that may hinder profitability in the near term. Additionally, competition in the recycling market continues to intensify, further complicating PureCycle's ability to establish a solid market position, which contributes to a negative outlook on its stock.