Cowen Sees 138% Upside In PureCycle Technologies - Read Why - PureCycle Technologies (NASDAQ:PCT)

Cowen analyst Thomas Boyes initiated PureCycle Technologies Inc PCT with an Outperform rating and a price target of $31, implying an upside of 138.65%.
Boyes mentions that PureCycle's patent-protected polypropylene recycling technology is highly differentiated as it produces near virgin-like plastic resin that can be used in higher-value applications than those made by traditional recyclers, giving them a first-mover advantage in a large and growing market.
The analyst believes it warrants a discount relative to established players, given that PureCycle is a pre-revenue company with new technology in a developing part of the market.
Recently, PureCycle Technologies signed a memorandum of understanding with Mitsui & Co., Ltd. to develop and operate a recycling facility in Japan to transform polypropylene waste into Ultra-Pure Recycled Polypropylene.
Price Action: PCT shares are trading higher by 5.39% at $13.69 during the premarket session on Thursday.